DeFi and NFT asset owners who are looking for methods to use their inactive assets to generate significant returns without being required to sell crypto holdings, might be able to use their crypto assets as a form of collateral.
Investors might be able to use their crypto assets to take advantage of strategic arbitrage opportunities, buy a variety of assets with considerable upside potential, while avoiding margin calls on their secured debt positions. It can also contribute to price growth, thus helping to increase a trader’s net returns.
The NFT space is growing rapidly, it will need reliable platforms to provide affordable loans for non-fungible tokens and other DeFi assets. Investors must have legitimate means to leverage more of their existing crypto for attractive yield farming loans and opportunities.
Leverage assets to generate passive returns
An innovative platform known as Drops allows traders or investors to get more returns from their DeFi and NFT assets. As explained on its website, Drops was designed to put your NFT and DeFi portfolio to work by leveraging the Drops platform to take assets or capital or start generating competitive returns by borrowing funds from. other users.
With Drops, users can lend against their DeFi and NFT tokens. This approach makes it possible to reduce the opportunity cost to hold cash or governance tokens by placing them as collateral and generating substantial returns and rewards on short-term loans.
You can also use your NFTs for loans. For example, you can deposit your NFTs as a type of collateral and get instant and quick access to a “no confidence” loan. Funding can be acquired without having to speak to the lender or wait for an approval process due to their “no authorization” NFT loan pools.
Declines also allow investors to turn their inactive assets into “active” returns. Inactive or parked assets can be viewed as lost opportunities. But with Drops, traders can get the most out of their investment portfolio by providing various stable and governance tokens to fungible loan pools or NFTs in return for significant returns and special rewards.
Continuing by explaining how NFT loans work, the Drops team notes that users have the choice of creating or joining existing pools. When you join those loan pools that meet your particular requirements / goals and conditions, or establish one by selecting which NFTs you want to accept and the amounts that can be loaned against them.
The team, Drops, also notes that you can earn significant returns on your crypto and NFT assets by selecting an LP that meets your needs and providing liquidity.
Borrow up to 80% of the total asset value
As stated on the official Drops website, you can use any supported NFT as collateral to lend up to 80% of your total asset value (calculated based on the floor price) and acquire an instant loan. “Without authorization” via the Drops loan pool.
Drops have been launched to make it easier to use popular NFTs for lending and making a profit. With financial NFTs set to become the leader or follower of the cryptocurrency and blockchain industry, Drops aim to facilitate “trend capitalization by supporting a rapidly growing list of tokens”.
Whether you want to make a profit on the liquidity of term insurance, positions, real world assets or bonds, Drops may be able to help.
You can also turn your interest in the game into “real” loans and returns by lending using your in-game NFTs. The list of Drops includes some of the tokens that are widely used as rare items, utility tokens in the game. gaming platform, digital real estate and in-game tokens.
If you are a digital collector, Drops can provide you with the opportunity to turn your inactive assets into active income, make profits when your cluster is not exposed, and improve your cash flow with quick loans.
Work with various participants in the crypto ecosystem
Drops investors include AU21 Capital, AXIA8 Ventures, Bitscale Capital, Blocksync Ventures, D64, Drops Ventures, Genblock Capital, x21, Gaga Ventures, Andrew Balyasnikov (Product at Zerion), Pavel Brek (Designer at Zerion), Michael Gu (CEO of Boxmining), Josephy Delong (CTO of Sushi), Richard Ma (CEO of Quanstamp), Nick Sawinyh (CEO of Defiprime and DexGuru), Cooper Turley (Audius) and Marc Weinstein (Mechanism Capital).
Drops partners include Polygon (formerly Matic Network), Enjin, Quantstamp, Blockchain Game Alliance, Oxb1, Polkastarter, parsiq, Oraichain, Charged Particles and Solv Protocol.