About
Lending in ZED RUN provides a safe and secure way for racehorses to be lent to other players and an easy, low risk way for previously inactive racehorses to compete.
There are two types of lending in ZED RUN - the Lending Marketplace, and Direct Lending. The below information applies to both types. For more specific information please see the resepective pages.
Lending Permits
Lending Permits are non-tradeable, zero value, units of measurement that represent the maximum quantity of racehorses a stable can lend out.
Players can acquire Lending Permits by locking up ZED Tokens.
The amount of Tokens required for each permit will be displayed in the ‘Manage Permits’ section of the stable.
Players can unlock their locked ZED Tokens by relinquishing their Lending Permits.
The amount of Lending Permits held by each player determines how many racehorses they can have in the Lending Marketplace, or directly lend, at one time. One Lending Permit is required for each racehorse.
Players can use Lending Permits to enter their available racehorses into the Lending Marketplace or lend out through Direct Lending.
One Lending Permit is required for each racehorse.
A Lending Permit is defined as “in use” if a racehorse associated with that Lending Permit is in the Lending Marketplace, or actively being borrowed by another player.
Lending Agreement Period
When lending or borrowing a racehorse, there is a lending agreement period in place, which states how long the racehorse will be lent out for. For the Lending Marketplace this is a set term, wherease for Direct Lending players can choose the length of the period.
ZED Token Utility
Lending represents one of the instances of utility for the ZED Token. A lock-up contract will be the primary mechanism for players to deposit or withdraw ZED Tokens under certain conditions. How the token interacts with the lending marketplace is explained below.
Lock
Players can lock-up ZED Tokens in order for Lending Permits to be issued based on the number of permits locked.
The conversion rate to acquire Lending Permits will be a dynamic measure based on market activity.
The active conversion rate will not have an effect on previously acquired Permits. This means that if all acquired Permits are relinquished, a player will receive ALL of their initial tokens back, regardless of the current conversion ratio.
Locked up tokens currently have no time restriction, nor cost associated. These are subject to change in the future based on market activity.
The minimum amount lockable will be set according to the amount required for one lending permit.
Unlock
Players can relinquish their Lending Permits to unlock their ZED Tokens.
This system only allows players to relinquish Lending Permits that are not currently being used.
A Lending Permit is defined as “in use” if a racehorse associated with that Lending Permit is in the Lending Marketplace or actively being borrowed by another player.
The stated amount of Lending Permits will be deducted from a player's profile and the corresponding ZED Tokens will be unlocked and sent to the Player’s wallet according to how many are being relinquished and the unit rate associated with acquisition.
When unlocking ZED Tokens, the unit rate at which the permit was acquired will be unlocked.
Racehorse Ownership
The racehorse remains under the ownership of the lender.
At no time will the racehorse NFT become the property of the borrower.
Owners will be able to view their racehorses engaged with lending in the ‘on loan’ section of the stable.
Borrowing Racehorses
What can the Borrower do with the racehorse?
Enter free races: Yes* Enter paid races: Yes* Enter tournaments: Yes** Breed: No Transfer: No
The Borrower will be responsible for paying any race entry fees.
*Please note:
In order to reduce initial prize split conflicts, borrowed racehorses will only be able to enter races if they have more than one hour remaining on the lending term.
Attempting to enter a racehorse into a race with less than one hour will result in a disabled state within the game.
This restriction is not supported for direct contract calls.
Players should make direct contract calls at their own risk, especially when the lending term is short and a race may not start before the lending period finishes.
** Please note, tournament payouts will all go to the original racehorse owner if the Lending Period ends before the racehorse completes the tournament and returns to the owner’s stable.
Changes to this logic may be added in the future, and will be accompanied by an announcement.
Access Limitations (Borrower)
Only two racehorses can be borrowed at a time from the Lending Marketplace.
A player can borrow a racehorse from the ‘marketplace’ tab on https://zed.run/
https://zed.run/marketplace/borrow, or through a Direct Lending agreement.
A stable will not be able to borrow one of their own racehorses.
End of the Lending Period
Once the Lending Period ends, control of the loaned racehorse is transferred back to the Lending Marketplace. If the owner has set the recall option to be ‘ return to stable’, the racehorse will instead go straight to the owner’s stable.
Players are then free to borrow another racehorse.
In the case of a Direct Lending agreement, control of the loaned racehorses is transferred back to the original owner.
Prize Sharing
Prize Calculations
When entering borrowed racehorses into paid races, or any other feature that requires paying crypto, the crypto is paid by the Borrower.
Paid racing
The prize share split for any racing rewards is calculated by first returning any entry fees paid by the Borrower back to them.
If no prizes are won, or the winnings amount is less than the initial buy in, the Borrower will carry the cost of any race entry fees.
See example below for reference:
$2.50 buy in race for borrower
$4.50 total winnings for coming in third place.
$2.50 returns to borrower to cover the buy in
$2.00 leftover
$1.00 to borrower and lender - example 50/50 prize split applied
Totals: Lender receives $1.00 total, Borrower receives $3.50 total ($2.50 + $1.00)
While the feature is in BETA, fees related to Lending will be waived. Stable owners and borrowers should be aware that fees will be introduced at a later date. The community will be notified before any fees are introduced.
Free racing
All prizes won through the Lending arrangement will be split as described in the Lending Marketplace or Direct Lending agreement, unless otherwise communicated in the event details or the owner regains control of the NFT before payout and the event does not explicitly support borrowed racehorses.
Rewards Distribution
Racehorses borrowed through the Lending Marketplace will have prize sharing values of 50/50. Using Direct Lending, players can agree the prize share they would like. Prizes will be automatically sent to both the Lender and Borrower at the time of payout, through the smart contract engaged in by the Lender and Borrower. Funds will appear in the respective players’ wallets automatically.
In the future, we would like to offer more in-game analysis for rewards and borrower activity tracking.
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