A New Dawn of Financing
A lending platform on the decentralized finance system, Drops DAO, has launched its mainnet. The firm celebrated its new product that opened its system for users to take loans and engage with everything the system offers. The move into the mainnet will give users access to loans with collateral for DeFi assets, NFTs, and the metaverse.
The new mainnet that was launched gives users the opportunity to lock up their digital assets as collateral. The locked-up digital assets would provide the DeFi and NFT ecosystem with more utility and liquidity. As the operation opens, users can now put up their idle DeFi, metaverse, and NFT assets as valid collateral to take immediate loans via the lending platform.
The implication of this is that users can now gain access to capital without having to depend on centralized bodies. This will, therefore, enhance the growth rate and faster adoption of NFT and DeFi projects. The adoption of both projects has improved considerably since 2021, according to reports.
Drops DAO’s project was established in 2021 when the conversation around metaverse and NFTs got to a very high pitch. Nevertheless, it was quite unrealistic at that time to use digital assets as collateral in taking loans. This was especially the view of Drops DAO founder Darius Kozlovskis.
According to Kozlovskis, it was after observing major movements in the market and a year of tireless research and development that the idea was birthed. It is considered a new financial milestone for NFTs. Kozlovskis stated further that the world is at the dawn of the finance of the metaverse, and Drops is happy to be part of it.
The Drops DAO project has raised up to $1 million in seed funding for the development of its NFT loan package from recognized investors in the crypto sector. Those investors include Bitscale Capital, Axia8 Ventures, and AU21. The project also got support from a number of angel investors such as NFT Whale 0xb1, the CEO of Quantstamp Richard Ma, the CEO of Enjin Maxim Blagov, Cooper Terley, and Marc Weinstein.
The Collateralized Loan from Drops NFT
As mentioned, Drops DAO leveraged its lending pool to provide decentralized NFT, DeFi, and metaverse loans. The lending pools permit any type of NFTs to be used as collateral. It could range from NFT collections and other metaverse materials to financial NFTs.
The Drop DAO platform is set apart from its competitors by giving users a collateral ratio of up to 60%, as well as a scalable network. The collateral ratio offered is the result of an isolated pool network where whitelisted NFTs are accepted collateral. It also has many tokens to be borrowed or to be given up as collateral.
Yet again, the platform equally offers protection to lenders and gives them rewards for making loans available. A non-whitelisted NFT, which is a riskier asset, offers a higher utilization and higher interest rates to lenders. It equally allows NFT to have wider utility and liquidity via lending pools.