Drops, a pioneer NFT lending platform, announced the launch of its testnet on October 27 in a press release. This achievement is significant in the Drops roadmap as the project prepares to launch its mainnet at a later date.
The Drops NFT lending platform will create an ecosystem in which NFT and DeFi token owners will be able to access or provide loans using their metaverse items as collateral. Drops’ core goal is to bridge the liquidity gap that exists in these emerging crypto niches.
Drops Founder and CEO Darius Kozlovskis commented on the achievement, highlighting the underlying potential for adding value to the NFT ecosystem.
“In the last few months, NFTs have taken center stage in crypto discussions.” However, the recent crypto market crash exposed underlying liquidity issues in this emerging market.”
“The Drops NFT lending model is intended to bring liquidity to NFT markets by connecting the metaverse world with Decentralized Finance” (DeFi).
We believe that by doing so, NFT owners will be able to extract more value from their idle assets,” Kozlovskis added.
The NFT Lending Platform Drops
The Drops project roadmap states that the NFT lending platform will be launched in three stages. The testnet is the first phase; interested participants can submit an application and then be guided on how to participate. Following the successful launch of the testnet, an audit will be performed in preparation for the mainnet launch, which will be the final phase.
Loans from the Drops NFT ecosystem will be available to NFT owners via the platform’s native tokens, dNFT and dTokens. These native tokens are intended to represent NFT collaterals in the Drops’ permissionless lending pools, enabling NFT owners to access or provide loans.
dNFT and dTokens will also be used to pay off existing debts. Drops has established a collateral factor of 0 to 1 as a guiding metric for the amount of money that can be borrowed against NFT collaterals.
Darius Kozlovskis, the project’s Founder and CEO, added that they are excited about the possibility of a metaverse world and will likely integrate with more DeFi ecosystems to accelerate the growth of NFTs.
“We are excited about the metaverse’s future because of its potential to build global digital communities.” We anticipate incorporating more DeFi opportunities in the future to support the widespread adoption of NFTs and digital ecosystems.”