Crypto enthusiasts can now collateralize their digital collectible with newest instrument by Drops platform
The Drops lending platform is going to roll out its NFT unit to accept digital collectibles as collateral. Its team shares the details of its multi-phase launch.
When DeFi meets NFT: Drops announces NFT lending platform
According to a press release shared with U.Today, Drops platform announces its first foray into the red-hot NFT lending segment. Its testnet phase launch is now in the cards.
— Drops DAO (@dropsnft) October 13, 2021
NFT segment enthusiasts can apply to participate in the stress tests of the NFT lending tool via a dedicated Google Form available on Drops’ official website.
Besides obtaining loans wth their idle NFTs collateralized, enthusiasts of the digital collectibles segment can earn extra yield on their non-fungible tokens.
Darius Kozlovskis, CEO and co-founder of the Drops platform, stresses the importance of the upcoming rollout for the liquidity of DeFi and NFT markets:
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 (DeFi).In doing so, we believe that NFT owners can derive more value from their idle assets
Novel tokenomic design for NFT collateralization
To represetnt the NFTs locked in the platform’s liquidity mechanisms, Drops will leverage its core native utility assets, dNFT and dTokens.
These tokens can also be utilized for borrowing and for paying outstanding debts. Right now, the platform registers $6.2 million in TVL; this indicator will most likely surge after the full-fledged release of the NFT collaterals unit.
Drops’ NFT collateralization platform will go live in mainnet after successful stress tests in testnet and a third-party security audit by top-tier cybersecurity vendors.