Vilnius, Lithuania (May 4th, 2022): Drops, the DAO providing loans for NFT and DeFi assets, is excited to announce its mainnet launch. Transitioning to a live network enables users and community members to interact with everything the Drops DAO ecosystem provides.
Drops DAO will bring much-needed utility and liquidity to NFT and DeFi assets. Users can leverage their assets as collateral through its lending tools and acquire instant loans. Having access to capital without relying on intermediaries is a crucial development and will bring more mainstream attention to DeFi protocols.
Drops DAO is set apart from other lending solutions because of its highly scalable system and up to 60% collateral ratio due to isolated lending pools. An isolated lending pool can accept whitelisted NFT collections as collateral, with multiple tokens available to borrow or supplied as collateral.
A higher collateral ratio is possible due to lower protocol risk and scalability. Lenders take a bet on collection liquidity, with riskier collections offering higher utilization and interest rates. Any collection can be added to Drops without incurring extra lender risk. Moreover, it enables any NFT collection to gain broader utility and liquidity through these lending pools, alleviating sell pressure on secondary markets.
Drops founder Darius Kozlovskis comments:
“Back in early 2021 when we started working on Drops, the idea of instant loans against NFTs seemed unrealistic. But after major shifts in the market and tireless year of research and developement, we finally arrived at what can become a new financial primitive for NFTs. We’re at the dawn of metaverse finance and are truly excited to be part of it.”
Drops raised $1 million in seed funding on May 2-21. Investors include Axia8 Ventures, Bitscale Capital, and AU21, Furthermore, the project is supported by numerous angel investors, including Enjin CEO Maxim Blagov, NFT whale 0xb1, Joseph Delong, Quantstamp CEO Richard Ma, Marc Weinstein, Cooper Turley.
About Drops DAO
Drops DAO provides loans for NFT and DeFi assets, supplying them with much-needed utility. The protocol uses lending pools that enable any type of NFT asset to be used as collateral — from collectibles and metaverse items to financial NFTs. Users can leverage their idle NFTs and DeFi tokens to obtain loans and earn extra yield.