I put this project together to demonstrate that you can assign collateral to an NFT. I’m calling it a Bonded NFT. The collateral is added during the mint and released during the burn. Because the collateral is assigned to the NFT, whomever holds the NFT has rights to the collateral.
There are two types of collateral used by this project: a tnt-721 NFT and some tnt-20 tokens.
With this implementation, there are currently three tnt-20 tokens supported: WTheta, GROVE and Ruby. This could grow if requested.
Link to project: https://AmorStyle.com/nfts/tntcolv1/
Grove: https://AmorStyle.com/nfts/tntcolv1/?tnt=grove
WTheta: https://AmorStyle.com/nfts/tntcolv1/?tnt=wtheta
Ruby: https://AmorStyle.com/nfts/tntcolv1/?tnt=ruby
The way it works
Whomever launches the Collateral Backed Smart Contract has the ability to create different Bonded ‘cards’ that can be minted (see the cardsv1 demo). The contract owner specifies what the collateral is for both the tnt-721 and tnt-20.
Then, during the mint process, the contract will require both the specified deposit NFT and Token in order to mint the new NFT.
That new NFT’s metadata will indicate what is held on behalf of the NFT holder. It will show what is Bonded to it.
Because the smart contract associates the collateral with the Token id, that token can be transferred to anyone with a simple send of the new Bonded NFT.
The Minting Process
Because the collateral contract gathers collateral from the person minting, Metamask will be used to get permission for each resource and to mint. Thus, if a tnt-721 NFT is required, Metamask will first ask for permission to acquire that resource. Next, if a tnt-20 token is required, Metamask will be used a second time to ask permission to acquire the Tokens. Finally, Metamask will be used a third time to kick off the mint of the Bonded NFT.
Recovering your Collateral
The Bonded NFT is meant to be transitory. It is designed to help you move a resource between accounts (or people). The mint process locks up the collateral, the burn process frees it back up. Whomever burns the Bonded NFT will receive the collateral. It’s the reverse of the minting process.
Take your Collateral to Market!
Because the collateral is locked to the existence of the Bonded nft, you can take it to market with confidence that the resource will exist through the trade.
This is made easy by the Selene Network wallet viewing code. Just click the ‘List’ button when viewing your resource.