Drops DAO brings new utility to the segment of non-fungible tokens and new liquidity streams to the global DeFi ecosystem. Its "loan-to-value" ratio is among the most attractive in the segment of noncustodial lending protocols.
Drops DAO goes live in mainnet to change the game in NFT collateralization
According to the official announcement shared by the team of Drops decentralized autonomous organization (DAO), its platform is up and running in mainnet.
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 relying on intermediaries: through its lending instruments, holders of DeFi coins and NFTs can obtain loans in stablecoins and altcoins in a nearly instant manner.
Due to its highly scalable design, reduced protocol risks and high-performance smart contracts architecture, Drops DAO can issue loans with up to a 60% collateral ratio in isolated liquidity pools.
Darius Kozlovskis stated that the idea and vision of his protocol are unique in terms of new value and introducing DeFis and NFTs to the next generation of investors:
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.
New type of utility for digital collectibles
Collateralization features unlock new opportunities for holders of NFTs and native tokens of DeFi protocols. They can utilize more resource-efficient mechanisms in a low-cost manner.
In May 2021, Drops DAO raised $1 million in seed funding; Axia8 Ventures, Bitscale Capital and AU21 backed Drops DAO in its fundraising efforts.
Also, this round was supported by a clutch of highly reputable angel investors, incuding Enjin CEO Maxim Blagov, NFT whale 0xb1, veteran analyst Joseph Delong, Quantstamp CEO Richard Ma, Marc Weinstein, Cooper Turley and so on.