“Delegation is a proxy in the crypto world. You can store valuable tokens in a cold wallet, connect it to a hot wallet, and perform actions that require tokens, such as claiming airdrops, playing games, or Just join the Discord community. This way you won't put your actual tokens at risk." Well-known developer foobar introduced his product delegate.cash in the article "Liquid Delegate".

Delegation is a new crypto primitive helping users claim airdrops, play games, and join token-gated communities from a separate wallet than the vault holding their NFT pic.twitter.com/mOz6LNokBk

— foobar (@0xfoobar) January 31, 2023

What is a Liquid Delegate?

Liquid Delegate (LD) provides a trustless method that allows you to trade "airdrop claim rights". NFT holders do not need to bear liquidation or leasing risks (guaranteed to be returned). This product was launched four months ago and currently has adoption cases on 11 EVM-compatible chains, such as Yuga Labs’ Sewerpass, ArtBlocks’ Friendship Bracelets, Forgotten Runes, and Invisible Friends, as well as the holding certification platform Tokenproof and The creator-oriented platform Manifold has related applications.

How to do it?

When NFT holders create LD, they will set a delegation period, for example: CloneX#999is delegated for one month. This NFT will be deposited into the custody contract and an LD NFT will be obtained.

The functions of LD are:

  • Trade on the NFT market

  • The holder has the right to appoint

  • Holders can obtain exclusive rights to flash loans for escrow NFTs

  • The holder can destroy the LD and return the escrow NFT to the depositor (NFT owner)

The concept of liquidity delegation is to provide a new type of liquid market for NFT. In the past, these activities were completed through private transactions with low protection.

How to apply?

Apply for airdrop outsourcing

Many NFT holders (or DAOs) do not have time to wait for airdrop news in the crypto community around the clock, but they also hope to get the maximum profit possible (possibly missing the opportunity to claim). At this time, LD can let you sell the rights to airdrop and let the buyer bear the work.

Passes, event ticketing and rentals

delegate.cash supports Vulcan and CollabLand. You can rent out the created LD for a week to let people participate in community or limited activities. No more private transfers of NFTs, increasing the risk of loss.​

Lock-up certificate

NFT projects all want their buyers to be loyal. Through LD, the NFT team can purchase LD from holders to encourage them to hold it for a long time and establish a mechanism similar to veToken.

How is the product profitable?

  • LD creation fee

  • Integrated third-party marketplace supporting ERC-2981 (Multiple Royalty Standard)

  • delegate.cash’s own trading market also adopts ERC-2981

Conclusion: A guaranteed rental approach

Keeping the NFT in a safe place, but being able to borrow or sell its utility to others, seems like the highlight of this product. Try to enable LD to satisfy various behaviors of NFT holders and provide liquidity for it.

However, since the holder will entrust the NFT to the protocol, there is also a risk of loss if something goes wrong, which is something that users need to consider.

This article allows NFT airdrop rights to be sold! What is Liquid Delegate? First appeared in Chain News ABMedia.