Drops DAO Unlocked its Ecosystem to Borrow Loans
The mainnet's debut allows users to lock their assets as collateral, adding liquidity and utility to the NFT and DeFi ecosystems. Through its lending facilities, users can now borrow fast loans using their idle NFT, metaverse, and DeFi assets as collateral. This means users can access finance without relying on centralized institutions, improving DeFi and NFT project growth and adoption rates.
NFT Collateralized Loans Drops
Drops DAO, as previously stated, leverages its lending pools to provide decentralized loans for NFT, metaverse, and DeFi assets. From NFT collections and metaverse objects to financial NFTs, these lending pools accept any NFT asset as collateral.
The platform distinguishes itself from the competition by offering users a 60% collateral ratio and a highly scalable network. The high collateral ratio is due to an isolated pools system, in which whitelisted NFT collections are accepted as collateral, and multiple tokens can be borrowed or supplied as collateral.
On the other hand, the platform protects lenders and pays them handsomely for making loans. Riskier collections or non-whitelisted NFT collections offer higher usage and, as a result, higher interest rates. Finally, any NFT collection can obtain greater utility and liquidity through these lending pools, relieving sell pressure on secondary markets.
