Key Takeaways
- Drops DAO is one of the most scalable DeFi lending protocols
- They announced its mainnet launch
Drops DAO is the latest crypto project with good news for DeFi and NFT enthusiasts. The DAO has just announced the launch of its mainnet, and that will certainly go down well with current and prospective users.
A New Project Making a Huge Impact
Drops, a relatively new but important DAO, is one of the projects aiming to drive metaverse finance forward. It provides loans for NFT and DeFi assets, facilitating on-chain liquidity across the metaverse. With the launch of its mainnet, Drops will become a lot more useful to users and community members as they will have easy access to everything the Drops ecosystem offers.
Already, Drops DAO is one of the reliable projects facilitating utility and liquidity for NFTs and DeFi assets. Its lending tools allow users to access instant loans, leveraging their crypto assets as collateral. By providing access to capital, Drops aims to bring DeFi protocols and the NFT niche to the limelight. Of course, this is a crucial development in decentralized finance and the crypto universe.
A Lending Solution with a Difference
While there are several other lending protocols in DeFi, Drops DAO is considered remarkable for many reasons. One of its major selling points is its highly scalable system. It also operates an isolated lending pool with up to a 60% collateral ratio.
The beauty of the isolated lending pool lies in the fact that it accepts whitelisted NFT collections as collateral. The implication is that there are always multiple tokens users could borrow or use as collateral.
As per the high collateral ratio, it is only possible because of the lower protocol risk. Lenders get to bet on collection liquidity, and riskier collections come with higher utilization and interest rates. Lenders can add any collection to Drops without incurring more risks.
In addition to being lender-friendly, Drops’ lending pools are helping NFT collections to gain broader utility and liquidity. This also alleviates pressure on the secondary market, strengthening the NFT and DeFi subsectors.
Journey to the Realistic Future
Considering what it has achieved so far, it is a little difficult to believe that Drops was founded last year.
Reminiscing on how far the project has come and his expectations, Drops Founder, Darius Kozlovskis said:
“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 development, 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.”
Drops DAO started brilliantly and was able to secure $1 million in seed funding in May 2021. Some of its notable investors include Axia8, AU21, and Bitscale Capital. A good number of Angel Investors also support the project, including Maxim Blagov (CEO of Enjin), Richard Ma (CEO of Quanstamp), Cooper Turley, Marc Weinstein, and Joseph Delong.
About Drops DAO
Drops is a decentralized autonomous organization (DAO) that aims to build “permissionless, trustless, and multi-chain infrastructure needed to help drive metaverse finance forward”. It facilitates utility and liquidity by providing loans for NFT and DeFi assets. Drops employ isolated lending pools that allow for the use of any type of NFT asset as collateral. This may include financial NFTs, collectables, metaverse items, and more. Drops’ users can also obtain loans in any asset of their choice. Drops is highly user-friendly and is ready for the future.
