# How the Puffy Lending Marketplace Works

#### Why a Lending Marketplace Matters

* **Some people can’t ship the hardware home.**\
  Certain countries tax or even ban vape devices. A marketplace lets residents there own the **earning rights** (the Puffy Pass NFT) without ever touching the physical device.
* **Idle devices earn nothing.**\
  You might stop vaping, go on vacation, or switch to a new model. Instead of leaving the device in a drawer, you list it, and someone else keeps it working—and both of you share the tokens.
* **Lower barrier for newcomers.**\
  Borrowers don’t have to buy hardware up-front. They pay a small deposit, start earning right away, and can decide later if they want their own device.
* **Built-in trust and safety.**\
  The fulfilment hub handles shipping and verifies each device. Smart contracts manage deposits and earnings splits automatically, so neither side can run off with the hardware—or the tokens.\ <br>

  #### How the Puffy Lending Marketplace Works

  1. **Owner locks in their rights, not the hardware.**\
     The person who owns the Puffy Pass NFT puts that pass—and a small pile of prepaid tokens for pods—into a smart contract. They never have to touch the actual vape.
  2. **Borrower books the vape with a deposit.**\
     Someone in a country where vaping is legal opens the app, picks an available device, and places a security deposit. A special “Rental NFT” instantly notes them as the current user on chain.
  3. **The app splits earnings automatically.**\
     While the borrower uses the vape, every day the reward contract sends half of the PUFFY tokens to the borrower and half to the owner—50/50 by default, or whatever split they agreed on.
  4. **No funny business.**\
     If the device is late or missing, the contract starts burning chunks of the borrower’s deposit each day. That makes dragging your feet expensive and keeps devices in circulation instead of gathering dust.


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