Drops, a Lithuania based NFT exchange, has just announced it is launching an NFT lending platform, according to the press release shared with iHodl.
In addition, the company has also announced that the testnet is set to mark the initial phase of its mainnet launch.
The platform introduces an avenue to collateralize idle NFTs, creating a more liquid market in which users can obtain loans and earn an extra yield.
According to the press release, the platform will be launched in three phases, starting off with the testnet, followed by an audit, and finally, the release of its mainnet.
Drops will leverage its native tokens dNFT and dTokens to represent NFT collaterals supplied to the platform’s permissionless pools. NFT owners who supply their digital assets to a particular pool can use the native tokens to borrow from the markets or repay outstanding debts.
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Drops founder & 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."