DeFi and NFT asset owners looking for ways to use their idle assets to generate substantial returns without having to sell crypto holdings may be able to use their crypto assets as collateral.
Investors may be able to leverage their crypto assets to take advantage of strategic arbitrage opportunities to buy a variety of assets with significant upside potential while avoiding margin calls on their secured debt positions. It can also add to price growth and help increase a trader’s net returns.
The NFT space is growing rapidly and needs reliable platforms to provide affordable credit for non-fungible tokens and other DeFi assets. Investors need to have legitimate ways to get more leverage from their existing crypto for loans and attractive income farming opportunities.
Using assets to generate passive returns
An innovative platform known as the drops enables traders or investors to get more returns on their DeFi and NFT assets. As explained on the website, Drops is designed to get your NFT and DeFi portfolio up and running by using the Drops platform to raise assets or capital, or to get competitive returns by raising funds from other users.
With Drops, users can lend against their DeFi and NFT tokens. This approach helps that Opportunity costs Hold liquidity or governance tokens by providing them as collateral and generating significant returns and rewards on short-term borrowing.
You can also use your NFTs on loans. For example, you can store your NFTs as a kind of security and get quick, instant access to a “trustworthy” loan. Funding can be purchased without actually speaking to the lender or waiting for an approval process because of their “no-approval” NFT credit pools.
Drops also allow investors to convert their idle assets into “active” returns. Unused or parked assets can be viewed as missed opportunities. But with Drops, traders can get more out of their investment portfolio by delivering various stablecoins and governance tokens to fungible or NFT credit pools in exchange for substantial returns and special rewards.
The Drops team goes on to explain how NFT loans work, noting that users have a choice of either creating existing pools or joining them. As you join these credit pools that suit your specific needs / goals and conditions, or when you create one by choosing which NFTs to accept and what amounts can be loaned for them.
The team, Drops, also suggests that you can get significant returns on your crypto and NFT assets by choosing an LP that suits your needs and by providing liquidity.
Borrowing up to 80% of the total asset value
As stated on Drops’ official website, you can use any supported NFT as collateral to borrow up to 80% of the total value of your asset (calculated based on the minimum price) and an instant “no permit” loan. to get the drops credit pool.
Drops were introduced to make it easy to use popular NFTs to borrow and make a profit. With financial NFTs expected to become the industry leader or successor in the cryptocurrency and blockchain industries, The Drops aims to make it easy to “take advantage of the trend by supporting a rapidly growing list of tokens”.
Whether you want to make a profit on the liquidity of futures insurance, positions, real assets, or bonds, Drops can potentially help.
You can also convert your interest in gambling into “real” credits and returns by using your gaming NFTs. The drops list includes some of the tokens that are widely used, such as rare items, game platform utility tokens, digital real estate, and in-game tokens.
If you are a digital asset collector, Drops may be an opportunity to convert your idle assets into active income and make a profit when your cluster is not on display and improve your cash flow with quick loans.
Cooperation with participants from different crypto ecosystems
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 at Boxmining)), Josephy Delong (CTO at Sushi), Richard Ma (CEO at Quanstamp), Nick Sawinyh (CEO at 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.