Vilnius, Lithuania (May 4, 2022): Drops, the DAO providing loans for NFT and DeFi assets, is excited to announce its Mainnet launch. Transitioning to a live network allows users and community members to interact with everything the Drops DAO ecosystem has to offer.
Drops DAO will bring much-needed utility and liquidity to NFT and DeFi assets. Users can use 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 stands out from other lending solutions due to its highly scalable system and up to 60% collateral rate through isolated loan pools. An isolated lending pool can accept whitelisted NFT collections as collateral, with multiple tokens available to borrow or provided as collateral.
A higher collateral ratio is possible due to lower protocol risk and scalability. Lenders are betting on the liquidity of collections, with riskier collections offering higher usage and interest rates. Any collection can be added to Drops without incurring any additional risk to the lender. Additionally, it allows any NFT collection to gain broader utility and liquidity through these loan pools, thereby easing selling pressure in secondary markets.
Drops founder Darius Kozlovskis comments:
“In early 2021, when we started working on Drops, the idea of instant loans against NFTs seemed unrealistic. But after major changes in the market and a tireless year of research and development, we have finally arrived at this which may become a new financial primitive for NFTs. We are at the dawn of metaverse finance and we are really excited to be a part of it.
Drops raised $1 million in seed funding from May 2-21. Investors include Axia8 Ventures, Bitscale Capital, AU21. In addition, the project is backed by many angel investors, including Enjin CEO Maxim Blagov, NFT 0xb1 whale, Joseph Delong, Quantstamp CEO Richard Ma, Marc Weinstein, Cooper Turley.
About DAO Drops
Drops DAO provides loans for NFT and DeFi assets, providing much-needed utility to them. The protocol uses loan pools that allow any type of NFT asset to be used as collateral – from collectibles and metaverse items to financial NFTs. Users can leverage their dormant NFTs and DeFi tokens to get loans and earn extra yield.