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Drops.co - Using NFTs as collateral for DeFi loans
The Cryptoverse keeps expanding and if 2020 was the year of Decentralized Finance, 2021 is clearly the year of NFTs. I crypto project combining both DeFi and NFTs will definitely take over the market! I wonder ... does such amazing platform exists?
In my search for a NFT DeFi project I came across an interview by Gabriel Haines with Darius Kozlovskis - the co-founder of Drops DAO. Drops DAO and Drops.co offers crypto loans for NFTs and DeFi assets.
NFT holders can bring their idle assets on Drops.Co and get leverage or loans for yield farming. If you are a NFT collector, you definitely have some NFTs that are sitting in the wallet doing nothing, you're not sharing or swapping them to friends, you don't show them to the family so holding them has no benefits.
Now collectors can get loans for supplying NFTs into pools and use the obtained funds for yield farming. Everything is available on Uniswap, Gate and JBex.
How Drops.co innovated the Metaverse? DeFi and NFTs can be used to borrow funds, using liquidity tokens obtained as collateral for yield farming. The NFTs can be used as collateral in NFT Lending Pools to obtain trustless loans. Other idle assets, such as stablecoins or governance tokens can be leanded to earn top APY.
Drops.co brings DeFi-style infrastructure into the NFT Metaverse, adding utility for idle assets such as stablecoins or NFTs. The users can leverage idle NFTs to obtain loans and earn yield. The recent months and the rise of NFTs are backing up Drops.co vision to create “financial” NFTs - the link between digital art and tangible financial instruments. You could still burn idle NFTs, burn them to ashes ... as long as you are not interested into earning money and farming yields.
The NFT Lending Pool is based on supply and demand. Anyone can create a NFT Leading Pool and set specific rules about the accepted NFTs or creators, and the assets borrowed against them. The lenders looking for yield can supply liquidity into the pool and back the assets. The borrowers wild then supply an LP formed from stablecoins and NFTs.
There are strong investors backing Drops.co, such as AXIA8 Ventures, AU21 Capital, Bitscale Capital or D64. Such interest from ventures companies shows that Drops.co comes as a solution for those holding valuable NFTs.
All the above information was compiled into an easy to read Twitter thread. If you are holding idle NFTs, or if you think that a certain collaction will bring people that will supply NFTs as collateral ... than you must check Drops.co!
So if burning NFTs is not an option... what about grabbing a burning NFT? ArtistByron created a Fire Dog after he read about Drops.co and decided to share them with the NFT community! This giveaway has two ways to earn entries, leave your .wam in the comments bellow and tag at least a friend, or complete the tasks from the tweet below.
There are 31 Fire Dog minted until now and 5 of them will be shared and distributed through this giveaway. More chances to win if you complete both the article and the Twitter tasks. Deadline to enter the competition is Sunday the 12th of September, at 23:59 UTC.