Neo Candy has launched the Candefi dApp on Neo N3 TestNet, allowing users to stake NEP-17 CANDY tokens into an options-like NFT that can be rented among speculators. The dApp is built on top of the Rentfuse lending protocol, enabling this additional layer of potential finance activity.
When minting an NFT on Candefi, the creator selects an asset for the NFT to monitor (i.e., NEO, FLM, BTC), determines a strike price, and provides a stake with CANDY tokens. A strike price is a fixed price that determines when the NFT can be exercised. In trading, exercising means putting into effect the right to buy or sell the underlying asset in an options contract. The value of the Candefi NFT will increase or decrease based on the price of the asset it monitors and its type of option (i.e., call or put).
Call & Put
Users can choose two types of price direction properties for the Candefi NFT on the platform – calls and puts. This is determined by the strike price. A call NFT increases in value when the price of the asset it’s monitoring goes up. A put NFT increases in value when the monitored price goes down.
When a Candefi NFT is minted, it is automatically listed on the Rentfuse lending protocol, where speculators can lease the NFT from creators using GAS. Creators who rent out Candefi NFTs will earn GAS from a stake the borrower puts up and REFU tokens for using the Rentfuse protocol.
Basic & Advanced
There are two types of Candefi NFTs that can be minted, Basic and Advanced, with the latter offering more flexibility regarding renting. With Basic Candefi NFTs, the renter can only redeem for the staked CANDY if the strike price hits during the rental period. However, if the NFT is not returned to the original owner by the predetermined deadline, the renter will lose the GAS collateral they put up to rent the Candefi NFT.
Advanced Candefi NFTs allow renters to exercise their positions and claim CANDY at any point during the pre-determined rental period. Additionally, the creator can implement other factors such as leverage and a time decay, which impact the amount of staked CANDY the exerciser will receive from the Candefi NFT.
The NeoCandy team has released a step-by-step guide for minting and borrowing Candefi NFTs. Additionally, Neo Candy community member, HaterTots, created and released the following video to walk users through the process:
About Neo Candy
Neo Candy is a suite of Neo N3 tools and games developed by Yannick Koitzsch, a Neo community developer. The NEP-17 CANDY token was designed to reward people for interacting with dApps in the Neo ecosystem. The goal of the token is to strengthen and grow the Neo community through supporting various projects.
Koitzsch has also released Candyclash, a risk-based NFT staking game, and several mini-games on the Discord server as part of the Neo Candy ecosystem. Most recently, Neo Candy released the Lollipop NFT collection, which will reduce fees for Candefi NFT users.
The full announcement can be found at the link below: