Drops 101: Everything You Need To Know

Drops is a platform that brings DeFi-style infrastructure to NFTs, providing some much needed utility for otherwise-idle NFT assets. 

NFTs in general are well on their way to mass adoption, however their perceived value remains disconnected from their practical value. For the first time, users will be able to leverage their NFT assets to obtain loans and earn yield, significantly reducing the opportunity cost of holding them long-term.

Built for the Future of NFTs

This DeFi-centric infrastructure will become even more important as we witness the rise of “financial” NFTs – an expansion of the space beyond digital artwork into more tangible financial instruments. 

Examples of these include:

  • NFTs loaded with erc20 tokens (Charged Particles, Solv, Genesis Shards)
  • NFTs representing debt and liquidity positions (Uniswap)
  • NFTs representing derivatives and tangible assets.

The practical value of these assets needs to be unlocked for interoperability with the rest of the DeFi world. Drops will become a one-stop shop for users to use their financial NFTs, enabling them to obtain liquidity and loans for NFTs, or put them to a yield-generating strategy. 

Core Feature Overview

At the heart of the Drops DeFi mechanism is dNFT, a protocol which mints ERC20 tokens representing pooled NFT assets. 

Using these NFT-backed tokens, users can finally leverage more tangible benefits from NFTs via a variety of functions, such as:

– Obtain instant access to liquidity

– Fractionalize NFT assets while retaining their ownership

– Obtain trustless NFT loans

– Earn yield with NFT vaults.

A separate staking method will also allow users to stake NFTs to farm new NFT assets. 

NFTs that represent any kind of asset, in-game items, real estate, cars, stocks, or derivatives, could all be used at Drops to get liquidity and earn yield. Holders of these assets will finally be able to put them to work in the DeFi ecosystem, relieving the opportunity-cost pressures of owning them.

Scaled with Polygon

The entire Drops platform will run on the Layer-2 scaling solution Polygon, which will facilitate rapid and virtually-free transactions. Drops will also be using DApp technology from Biconomy, which will subsidize all transaction costs and enable users to interact with the platform as if it were the Ethereum mainnet.

Users will gain all the benefits of Polygon scaling, but retain complete custody of their NFT assets.

DOP – Drops Native Token

DOP is the native token of the Drops ecosystem. The token will be used as one of the primary means of payment on Drops, as well as provide governance rights on the platform via a hybrid governance model.

Additionally, DOP holders will be granted access to private NFT drops, while DOP liquidity providers and stakers will receive rewards.

Stay Up-To-Date

To keep up to date with all the latest development and news on Drops, follow the links below:

Discord: https://discord.gg/Zb9KapDA

Telegram: https://t.me/drops_nft

Web: https://www.drops.co

Previous ArticleNext Article

Join Our Mailing List

Keep up with the latest in FinTech, Blockchain, and Crypto.

You have Successfully Subscribed!