Drops launches NFT lending platform to bridge market liquidity gap

Drops launched its NFT lending platform today, Invezz learned from a press release. The testnet is set to mark the first stage of its mainnet launch. By making it possible for metaverse items to serve as loan collateral, the Drops NFT lending ecosystem attempts to bridge the liquidity gap in NFT markets.

The second stage of the launch will be an audit. The mainnet will be released in the third and final stage. Any NFT owner who wants to participate can apply. Then, they will be instructed on how to take part in the Drops NFT Loans testnet.

Drops to provide a much-needed liquidity solution

With NFTs becoming more and more popular, Drops is well-positioned to provide the much-needed liquidity solutions by tapping into this growing ecosystem. Their NFT lending platform helps create a more liquid market by providing an avenue to collateralize idle NFTs.

Drops Founder and CEO Darius Kozlovskis said:

NFTs have become the centre stage of crypto discussions in the past few months. However, the latest crypto market crash revealed underlying liquidity issues in this upcoming niche. The Drops NFT lending model is designed to introduce liquidity in NFT markets by bridging the metaverse world with Decentralized Finance (DeFi). In doing so, we believe that NFT owners can derive more value from their idle assets.

Drops to leverage native tokens as NFT collateral

Drops tokens dNFT and dTokens will be supplied to the platform’s permissionless pools. They can be used by NFT owners to repay debt or borrow from the markets. At the moment, the Drops lending platform has a total value locked (TVL) of $6.2 million. As more and more people join the Drops community, this number will probably increase.

Darius Kozlovskis added:

We are excited about the future of the metaverse given its potential in building global digital communities. The Drops NFT lending platform provides a perfect starting point to contribute towards the growth of the metaverse. In future, we anticipate integrating more DeFi opportunities to support the mainstream adoption of NFTs and digital ecosystems.