Drops, a platform that facilitates loans for NFTs and DeFi assets, has revealed the first phase of rolling out its three-phase NFT lending platform. According to the official release, the Drops NFT lending platform provides users with options to use their NFTs as collateral in exchange for accessing unreliable loans from unauthorized Drops NFT lending groups.
The NFT lending platform will be launched first on the testnet, marking the journey towards the eventual opening of the mainnet. Interested NFT owners can drop their applications to join the testnet and see the history in the making. The second phase will include security audits before the final phase begins with the start of the main network. Once the NFT lending platform is operational, it will play a critical role in bridging the liquidity gap within the NFT ecosystem.
Darius Kozlowskis, founder and CEO of Drops, notes, “NFTs have taken center stage in the crypto debate over the past few months. However, the recent crash of the cryptocurrency market has exposed fundamental liquidity issues in this upcoming niche. The Drops NFT lending model is designed to introduce liquidity into the NFT markets by bridging the world of metaverses with funding. Decentralized. By doing this, we believe that NFT owners can derive more value from their idle assets.”
With the DeFi market expanding at an unprecedented rate, Darius is bullish on the new NFT Lending platform. he adds, “We are excited about the future of the metaverse for its potential to build global digital societies. The Drops NFT lending platform provides an ideal starting point for contributing to the growth of the metaverse. Going forward, we expect to incorporate more DeFi opportunities to support mainstream adoption of NFTs and digital ecosystems. “
Instant Liquidity and Yield Opportunities for NFT Owners
With Drops, NFT owners can use their assets such as games and financial NFTs, collectibles, and metaverse items as collateral to gain instant access to unreliable loans without intermediaries or central authorities. With NFT lending suites, Drops allows users to seamlessly access financing opportunities and allows users to convert their idle assets into active revenue-generating products.
Through native dNFTs and dTokens, Drops represents NFT collateral for users provided to NFT lending groups. As such, NFT holders adding liquidity to a particular pool can use local tokens to borrow or repay existing loans. At the same time, the platform also allows users to earn attractive returns and rewards to provide liquidity to its lending groups.
Drops is backed by notable venture capital firms, including AU21 Capital, Bitscale Capital, Genblock Capital, and x21, among others, and investors such as Richard Ma (CEO, Quantstamp), Nick Sawinyh (CEO, Defiprime and DexGuru) , Michael Joe (CEO, Boxmining), and many others. The platform currently holds more than $6.2 million in total locked value (TVL), which could rapidly double once the NFT Lending platform goes live on the main network.