Pioneer NFT lending platform Drops has announced the debut of its beta network. The milestone marks a significant achievement in Drops’ roadmap as the project prepares to launch its main network at an earlier date.
The Drops NFT lending platform will introduce an ecosystem where NFT and DeFi token owners can use their metaspace projects as collateral to obtain or provide loans. At its core, Drops seeks to bridge the liquidity gap that exists in these upcoming cryptocurrency niches.
Drops founder and CEO Darius Kozlovskis commented on the milestone, pointing out the underlying potential to add value to the NFT ecosystem.
“Over the past few months, NFT has taken center stage in the cryptocurrency discussion. However, the recent cryptocurrency market crash revealed potential liquidity issues in this upcoming niche.”
“The Drops NFT lending model aims to introduce liquidity to the NFT market by connecting the meta-world with decentralized finance (DeFi).” Kozlovskis added, “In doing so, we believe NFT owners can get more value out of their idle assets.
Drops NFT lending platform
According to the Drops project’s roadmap, the NFT lending platform will be launched in three phases. The first phase is a test network; interested participants can submit applications, after which they will be instructed on how to participate. Once the test network is successfully launched, an audit will be conducted to prepare for the launch of the main network, which will be the final phase.
NFT owners will be able to access loans from the Drops NFT ecosystem through the platform’s native tokens, dNFT and dTokens. These native tokens are intended to represent NFT collateral in Drops’ permissionless loan pool, allowing NFT owners to access or provide loans.
The dNFT and dTokens will also be used to repay outstanding debt. Test.com has set a collateral factor between 0 and 1 as a guideline for what a person can borrow against their NFT collateral.
Darius Kozlovskis, the project’s founder and CEO, further noted that they are excited about the possibilities of the meta-world and possible integration with the wider DeFi ecosystem to spur growth in NFT.
“We are excited about the future of the metaverse given its potential to build a global digital community. Going forward, we expect to integrate more DeFi opportunities to support mainstream adoption of NFT and the digital ecosystem.”