Drops, which allows anyone to use DeFi or NFT assets to access financing, and generate passive yield, announced the launch its NFT lending platform. Drops NFT Lending Platform will help solve the liquidity crisis in the NFT market. Users can use their NFTs to secure instant access to trustless loans through its permissionless NFT Lending pools.
Drops now sets the stage for the mainnet launch’s initial phase. The platform will go live in three phases, beginning with the testnet launch. The second phase, which will be followed by the testnet launch, will include audits. This phase will then lead to the final phase of the mainnet introduction. Drops currently accepts applications from NFT owners that wish to take part in the testnet phase. They will also guide each participant through the process.
Drops’ founder and CEO Darius Kozlovskis says, “NFTs are the center stage of crypto discussions these past months.” The latest crypto market crash has revealed that there are liquidity problems in this new niche. Drops NFT lending model aims to bring liquidity into NFT markets through the integration of decentralized finance and metaverse finance. We believe NFT owners will be able to get more value out of their idle assets by doing this.
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Drops’ lending platform allows you to collateralize non-performing NFTs and creates a liquid market. Drops allows users to put idle assets to use, which in turn helps them grow their portfolios. Drops NFT lending pools can be accessed by interested users who will receive additional rewards and liquidity in return for their efforts.
Drops allows NFT owners to select from a variety of pools to match their risk profile by leveraging the dNFT and use dTokens as NFT collateral. You can also create and build a pool by setting the criteria for acceptable NFTs as well as the amounts that can be borrowed against them. NFT owners who provide their assets to a specific lending pool will be eligible to borrow money from the market or to repay existing debts using the platform’s native tokens.
Drops’ NFT loan protocols have gained considerable traction since July when it launched on Ethereum mainnet. In less than 24 hours, Drops secured over half a million USD in total value locked (TVL). This was spread across prominent tokens such as Enjin (ENJ), Ether(ETH), USDC and Wrapped Bitcoins (WBTC). Drops currently has more than $6.2million TVL. This figure will rise as more metaverse participants join Drops after the launch NFT Lending.
Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, investment or financial advice.