Drops DAO, a landing platform, is now operational on mainnet and it has started accepting DeFi and NFT assets as collateral for issuing loans.
Drops’ decentralised autonomous organisation (DAO) is a decentralised peer-to-peer lending mechanism that enables crypto enthusiasts to acquire loans. Recently, Drops DAO added a new utility to the non-fungible token (NFT) segment as well as new liquidity streams to the global DeFi ecosystem.
Loans from Drops DAO using DeFi and NFT collateral
Drops DAO makes loans without the need for intermediaries. The holders of DeFi tokens and NFTs may acquire loans in stablecoins and altcoins very instantly from it. Drops DAO may provide loans with up to a 60% collateral ratio in segregated liquidity pools because of its highly scalable design, minimised protocol hazards, and high-performance smart contracts architecture. Its loan-to-value ratio is among the most appealing in the noncustodial lending protocol area.
Collateralization features open up additional potential for holders of NFTs and DeFi protocol native tokens. They can use more resource-efficient techniques at a lower cost.
Darius Kozlovskis, founder and CEO of Drops DAO, remarked that his protocol’s concept and vision are unique in terms of creating new value and presenting DeFis and NFTs to the next generation of investors. He further stated the followings:
“When we originally started to work on Drops in early 2021, the idea of quick borrowing against NFTs seemed absurd. However, following significant market swings and a year of painstaking study and development, we came up with a new financial foundation for NFTs. Curranty, we are at the commencement of metaverse finance.”
