BUSINESS | Nov 2, 2021 | WOZINGA NEWS
Drops: An NFT lending platform, prepares for its NFT loans Testnet live
- Drops, revealed the first phase of the three-phase rollout of its NFT Lending platform.
- The platform offers users options to use their NFTs as collateral in return for access to trustless loans from Drops’ permissionless NFT lending pools.
By Elah Mae Ariate Wozinga Staff
Drops, a platform that facilitates loans for NFTs and DeFi assets, has revealed the first phase of the three-phase rollout of its NFT Lending platform.
Per the official release, the Drops NFT lending platform offers users options to use their NFTs as collateral. It will be the return for access to trustless loans from Drops’ permissionless NFT lending pools, according to the report.
Drops NFT lending model is designed to introduce liquidity in NFT markets
The NFT lending platform will be live on the testnet first, kicking off the route to the eventual mainnet debut. Interested NFT owners can apply to join the testnet and witness history in the making.
The second stage will consist of security audits before the final stage begins with the mainnet rollout. Once operational, the NFT Lending platform will be important in bridging the liquidity gap within the NFT ecosystem.
“NFTs have been the center stage of crypto discourse in the last few months,” says Darius Kozlovskis, Founder & CEO of Drops. However, the most recent crypto market crisis exposed underlying liquidity difficulties in this emerging economy.
“The platform’s strategy aims to bring liquidity to NFT markets by connecting the metaverse with Decentralized finance. We believe that by doing so, NFT owners will be able to extract more value from their idle assets,” he added.
Instant Liquidity and Yield Opportunities for NFT Owners
In addition, NFT owners can utilize their assets as collateral. These include gaming and financial NFTs, collectibles, and metaverse objects, to gain rapid access to trustless loans without the need for mediators or centralized authorities using Drops.
Drops allows consumers to easily access funding opportunities and turn their idle assets into active yield-generating goods thanks to its NFT lending pools.
Drops represent users’ NFT collaterals submitted to the NFT lending pools using its native dNFT and dTokens. As a result, NFT owners who provide liquidity to a specific pool can borrow or repay existing loans using the native tokens. Simultaneously, the platform enables users to earn significant returns and prizes for providing liquidity to its lending pools.