Overview
The next NFT primitive: tradeable delegation rights
| Contract Name | Address (Ethereum and Goerli) |
|---|---|
Delegate Registry V2 | 0x00000000000000447e69651d841bD8D104Bed493 |
Delegate Token | 0xC2E257476822377dFB549f001B4cb00103345e66 |
Principal Token | 0xC73dFD486BC155b8126a366F68A4fefe05CE1dCD |
Create Offerer | 0xf4c9581E2F2CE9d7E07a20b81e1B46aA95C8b6f4 |
Market Metadata | 0xBa93c25cD7db01b5d8f4b74aE4e3F5e048144834 |
Liquid delegates (LDs) wrap delegation rights into a tradeable NFT. This gives you a trustless way to trade airdrop claims and more. It grants no-liquidation, no-risk NFT rentals automatically compatible with all standard ERC721s.
How does it work? The Liquid Delegate creator chooses two parameters: an NFT they own and the timeframe to delegate it for. For example, I might delegate Azuki #578 for one month. I would then deposit the Azuki into an escrow contract that will manage the delegation, and I receive a Liquid Delegate NFT in return.
Liquid Delegate NFTs have the following properties:
they are tradeable on NFT marketplaces
holder will automatically receive delegation rights
holder has exclusive rights to atomically flashloan the escrowed token
holder can burn it to return the escrowed NFT to the depositor
Why are these features important? Tradeability opens up an entirely new liquid market for NFT utility, whereas beforehand they were mostly done in handshake deals behind closed doors. Automatic delegation rights makes it simple to use that utility. Exclusive flashloan rights provide backstop functionality to ensure compatibility with projects that don’t support delegation yet. The burn function opens up an avenue to retrieve the escrowed token before expiration if the depositor changes their mind.
Once a Liquid Delegate expiration timestamp hits, anyone may burn the Liquid Delegate and return the escrowed NFT to the depositor. Eager depositors may wish to call this trigger themselves, or automated bots could burn expired NFTs on demand.
What are the Use Cases?
1. Airdrop Claim Rights
Some people don’t have the free time to be glued to their screens 24/7/365 with notifications on across Discord/Twitter/Telegram to claim free stuff. Of course they’d like to maximize profits, but not at the expense of other important priorities. Or maybe there’s a DAO which finds it difficult to run proper governance across all the onchain activites necessary. Liquid Delegate lets you put those airdrop rights up for sale and let someone else do the dirty work. And LD buyers can batch up their work to make it worth the time.
2. Alpha Pass Rentals, Event Ticketing, IP Rights
Want to give somebody a taste of a token-gated discord? You could rent your NFT to them for a week (for a small fee, of course) taking advantage of the fact that delegatecash has native support in both Vulcan and CollabLand. Or maybe you have an ApeFest ticket but can’t go in-person yourself? Previously you might give it to a friend, or negotiate some sketchy OTC deal with a Twitter anon. Now you can just rent out your token utility for a week or two, and get paid in an upfront way for it. It would also be fascinating to structure IP rights agreements around Liquid Delegates.
3. Lockup Incentives
NFT projects want to reward their most loyal diamond-handed believers. But what does that even mean - discord activity, twitter pfps, follower count, something else? Now projects can directly incentivize long-term alignment by purchasing Liquid Delegates from holders who lock up for extended time periods. Could veToken-esque incentive programs be built on top of this? We’ll see!
Are there other protocols tackling each of these usecases? Of course. But none of them roll up so many different possibilities into a unified interface with simple time expirations and comprehensive asset protection. Standardization attracts liquidity.
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