Drops, a pioneer NFT lending platform, has announced the debut of its testnet, according to a press release on October 27. This milestone marks a significant accomplishment in the Drops roadmap as the project prepares to launch its mainnet at a sooner date.
The Drops NFT lending platform will introduce an ecosystem where NFT and DeFi token owners can access or provide loans using their metaverse items as collateral. At the core, Drops seeks to bridge the liquidity gap that exists in these upcoming crypto niches.
Drops Founder and CEO Darius Kozlovskis commented on the milestone, noting the underlying potential of adding value to the NFT ecosystem,
“NFTs have become the centre stage of crypto discussions in the past few months. However, the latest crypto market crash revealed underlying liquidity issues in this upcoming niche.”
“The Drops NFT lending model is designed to introduce liquidity in NFT markets by bridging the metaverse world with Decentralized Finance (DeFi).In doing so, we believe that NFT owners can derive more value from their idle assets,” added Kozlovskis.
The Drops NFT Lending Platform
According to the Drops project roadmap, the NFT lending platform will roll out in three phases. The first phase is the testnet; interested participants can submit an application, after which they will be guided on how to participate. Once the testnet is successfully launched, an audit will be conducted in preparation for the mainnet launch, which will mark 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 designed to represent NFT collaterals within the Drops’ permissionless lending pools, allowing NFT owners to access or provide loans.
dNFT and dTokens will also be used to repay outstanding debts. Drops has set a collateral factor between 0 and 1 as a guiding metric for the amount one can borrow against their NFT collaterals.
The project’s Founder and CEO, Darius Kozlovskis, further noted that they are excited about the possibility of a metaverse world and will likely integrate with more DeFi ecosystems to spur the growth of NFTs.
“We are excited about the future of the metaverse given its potential in building global digital communities. In future, we anticipate integrating more DeFi opportunities to support the mainstream adoption of NFTs and digital ecosystems.”
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