Drops DAO Goes Live in Mainnet, Starts Accepting DeFi and NFT Assets as Collateral
Drops DAO begins issuing loans against collateralized non-fungible tokens (NFTs) as its platform goes live on the mainnet
- Drops DAO goes live on mainnet to change the game in NFT collateral
- New utility type for digital collectibles
Drops DAO brings new utility to the non-fungible token segment and new liquidity flows to the global DeFi ecosystem. Its loan-to-value ratio is among the most attractive in the segment of non-custodial loan protocols.
Drops DAO goes live on mainnet to change the game in NFT collateral
According to the official announcement shared by the team of Drops Decentralized Autonomous Organization (DAO), its platform is operational on the mainnet.
– DAO Drops (💧,💧) (@dropsnft) May 4, 2022
Drops DAO is a decentralized peer-to-peer lending protocol; it allows crypto enthusiasts to obtain loans using their DeFi assets and non-fungible tokens (NFTs) as collateral.
As such, Drops DAO issues loans without the need for intermediaries: through its lending instruments, holders of DeFi coins and NFTs can obtain loans in stablecoins and altcoins almost instantly.
With its highly scalable design, reduced protocol risks, and high-performance smart contract architecture, Drops DAO can issue loans with a collateral rate of up to 60% in isolated liquidity pools.
Darius Kozlovskis said the idea and vision for his protocol is unique in terms of bringing new value and introducing DeFis and NFTs to the next generation of investors:
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 what may become a new financial primitive for NFTs. We’re at the dawn of metaverse finance and we’re really excited to be a part of it.
New utility type for digital collectibles
Collateralization features open up new opportunities for holders of NFTs and tokens native to DeFi protocols. They can use more resource-efficient mechanisms at lower cost.
In May 2021, Drops DAO raised $1 million in seed funding; Axia8 Ventures, Bitscale Capital and AU21 supported Drops DAO in its fundraising efforts.
Additionally, this round has been backed by a group of highly reputable angel investors including Enjin CEO Maxim Blagov, NFT 0xb1 whale, veteran analyst Joseph Delong, Quantstamp CEO Richard Ma, Marc Weinstein , Cooper Turley, etc.