Drops, a platform that allows anyone to use their DeFi and NFT assets to access financing and generate passive yield, has announced the launch of its NFT lending platform. Per the announcement, the Drops NFT Lending platform will solve the liquidity crisis within the NFT market by allowing users to post their NFTs as collateral to receive instant access to trustless loans via its permissionless NFT Lending Pools.
With the platform now ready for the testnet launch, Drops sets the initial phase of the mainnet launch in motion. The platform will be put in motion in three stages, starting with the testnet launch. Following the launch, the second phase will consist of audits before the third and final phase of mainnet introduction. Drops is currently accepting applications from NFT owners who wish to participate in the testnet phase and will guide each participant throughout the process.
Darius Kozlovskis, Founder & CEO of Drops, remarks, “NFTs have become the centre stage of crypto discussions in the past few months. However, the latest crypto market crash revealed underlying liquidity issues in this upcoming niche. The Drops NFT lending model is designed to introduce liquidity in NFT markets by bridging the metaverse world with decentralized finance. In doing so, we believe that NFT owners can derive more value from their idle assets.”
Unlocking The Power Of Metaverses
The Drops lending platform introduces an avenue to collateralize idle NFTs, thus creating a more liquid market. Moreover, by helping users put their idle assets to work, Drops also empowers users to grow their portfolios. Interested users can add liquidity to the Drops NFT lending pools in exchange for returns and additional rewards.
By leveraging its native dNFT and dTokens to represent NFT collateral added to its permissionless lending pools, Drops will allow NFT owners to choose from a wide variety of pools that match their risk profiles. Another option is to create and construct a pool by establishing the criteria for acceptable NFTs and the corresponding amounts borrowed against them. Accordingly, NFT owners who supply their assets to a particular lending pool will be able to use the platform’s native tokens to borrow from the market or repay outstanding debts.
Since Drops launched its NFT loan protocols on the Ethereum mainnet in July, the platform has gained significant traction. The platform secured more than half a million USD worth of total value locked (TVL) in less than 24 hours of its launch, spread across prominent tokens like Enjin (ENJ), Ether (ETH), USDC, and Wrapped Bitcoin (WBTC). Currently, Drops has accumulated more than $6.2 million TVL, a figure that will increase as more metaverse participants join the community after the launch of NFT Lending platform.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.