Drops, an NFT-meets-DeFi platform, has started his loan history on the Ethereum Mainnet yesterday in its very first step towards NFT-backed lending.
🙌📢The wait is over!
Our credit log with liquidity mining program is live! 🥳
You can borrow / borrow $ ENJ, $ USDC, $ ETH, $ WBTC
and my $ DOP here👉https: //t.co/YCh56YE5hk
🎯 More #NFT-related tokens will be added soon.
📒More details: https://t.co/BfJYBd1pwH pic.twitter.com/Xmg5VK74cz
– Drops (@dropsnft) July 14, 2021
The compound fork will initially only support lending and borrowing markets for NFT governance tokens, but plans to expand to support actual NFT tokens by the end of the year.
The Drops Loans Protocol
Dropping Loans has secured more than half a million Total Value Locked (TVL) in less than 24 hours since launch, spread across four initial markets. These include Enjin Coin (ENJ), USD Coin (USDC), Ether (ETH), and Wrapped Bitcoin (WBTC), with other NFT governance token markets on the way.
Markets are currently secured with Chainlink oracles.
The launch will also be accompanied by a liquidity mining program to incentivize liquidity, which currently distributes 2,666 Drops Ownership Power (DOP) tokens per day. DOP is Drops’ official token used in governance and other platform functions.
Along the road
The Drops team has already announced some major plans for the remainder of 2021, including an expansion to both Binance Smart Chain (BSC) and the popular Layer 2 scaling network Polygon.
In addition, they plan to implement markets for automated market maker (AMM) governance tokens, as well as their ultimate goal: loans against actual NFT tokens. The latter includes additional components that work in conjunction with the credit protocol, including a fractionalization protocol and “Margin NFT” – an NFT leverage function.
If the team succeeds, Drops could be the very first DeFi protocol to provide trusted credit in exchange for non-fungible tokens.
Drops is a project by the founders of Node Runners, an NFT-based card game. The platform seeks to provide value to unused NFT assets by allowing holders to obtain credit and generate returns, just like it does with fungible tokens.
The project highlights the importance of such infrastructure for the future of NFT assets, particularly “financial NFTs” – more tangible NFT assets that represent financial instruments.
Alejandro is a New Zealand-based trader and writer who has worked in the cryptocurrency and blockchain space since early 2016. With great passion for this emerging technology, he has written content for a wide variety of projects and news agencies.
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