Drops, a platform that facilitates loans for NFT and DeFi, has revealed the first phase of the three-phase introduction of its NFT platform.
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.
Drops is counting on the rising popularity of NFTs to grow its ecosystem by providing NFT owners with much-needed liquidity within this new asset class. The NFT lending platform launched by Drops gives NFT holders an avenue to collateralize their idle NFTs. The platform acts as a liquid market that allows users to earn extra yield and secure loans.
Darius Kozlovskis, Founder & CEO of Drops, said: “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.”
He also noted: “We are excited about the future of the metaverse given its potential in building global digital communities. The Drops NFT lending platform provides a perfect starting point to contribute towards the growth of the metaverse. In future, we anticipate integrating more DeFi opportunities to support the mainstream adoption of NFTs and digital ecosystems.”
The platform will be rolled out in three phases, kicking off with the testnet, followed by an audit, and finally, the mainnet release. NFT owners who wish to participate can submit an application form, after which they will be guided on how to take part in the Drops NFT Loans testnet.
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.