So, you’ve all been good boys and girls and accumulated your little stack of EOS. You’ve kept the faith, albeit wobbling a little bit through the long summer of red candles and are sitting there wondering when REX will launch. REX for those not aware is Dan’s (block.one’s) proposal for earning a passive income by leasing your EOS for T-REX. By the way, don’t you just love that name? Now, for purposes here, I won’t dwell on REX but let you do your own investigating and homework as to what that’s all about as the purpose of this article is to give you a quick overview of the Chintai platform and how you can earn a passive income from your EOS NOW.
As the guys at Chintai put it, Chintai is a “fully functional token leasing platform that will allow EOS token holders to generate income through token leasing, while in turn providing critical resources needed by dApp developers.” (source: https://www.chintai.io/) Or, to put it another way (and in the terms of the Monopoly board / property ownership model that has been widely used to explain EOS), it’s a way you can lease out your EOS for a set period of time for a return calculated as interest. In other words, you can become your very own “slum landlord”.
Yes people, that’s right, you can accumulate MORE EOS by simply renting out the EOS you already own. Capitalism in its purest form, if by Capitalism we mean, capital goes to capital. So, now you’re wondering how does this all work?
Well, the first thing you need to do is go along to the Chintai portal here: https://eos.chintai.io/exchange/EOS7D, a screenshot of which is provided below.
Ignoring all the nitty gritty, as you can see you are presented with 2 basic options which are:
1. The “leasing” or “lending” period (under “Markets”) on the left-hand-side, where you can choose between 7, 14, 21 and/or 28 days.
2. The option to Lend or to Borrow (under “Order Entry”) on the right-hand-side. And I guess for the majority of us, we will be only interested in the lending option.
You then select how many EOS you wish to lend and for which period of time. Now, there are no set returns per se, as this is a dynamic, market driven platform, so the return you earn is a variable. That said, I would imagine that the longer you choose to rent your EOS the greater the return. And an important thing to note here is that at ALL times you never, never ever forefeit ownership of your EOS, as you are simply waiving the rights to its associated CPU and bandwidth for a set period of time. All of this is governed under the terms of the Ricardian contract between borrower and lender with the safeguards inherent therein. And it is because of this contractual compliance that the ONLY way you can currently engage in the platform is via Scatter. So those of you who currently do not have Scatter you really should get it now.
What I love about Chintai is that if you do decide to lease your EOS (and a contract is agreed) you receive your interest payment (in the form of EOS) up front. Yes, UP FRONT. So given all these factors, let’s take a simple example of what it actually means. Let’s say you wish to lend 10 EOS for 7 days at a rate of 10% interest for that period. It means you will “earn” 1 EOS in interest. It’s as pure and simple as that.
As an aside (and for those of you wondering why people would wish to “borrow” EOS and what is in it for them), the short answer to this is that it is great for, say, startups with limited resources who wish to test markets and ideas without the need for the investment of buying EOS outright.
So there we have it in a nutshell people. A simple, straight-forward way in which you can generate more EOS for already being an EOS holder. The platform is now live and only time (and market forces) will tell the kind of returns we can expect.
One last thought at this juncture will be whether we can continue to lend our EOS via Chintai when REX goes live, but I suspect not. Only time will tell how this plays out as like Usain Bolt, in this “eosphere” of ours, things do tend to move fast.