Drops, a project building liquidity and loan infrastructure for NFTs, has officially launched its loans protocol on Ethereum mainnet. The platform is designed to facilitate the first large-scale implementation of trustless loans against NFT-based collateral – a feat which is yet to be achieved in the space.
At launch, Drops loans will begin by supporting borrowing against popular ERC20 tokens. However, the team behind the project plans to integrate loans against actual NFTs by the end of 2021.
About the launch
Drops has launched loan markets for Enjin Coin (ENJ), USD Coin (USDC), Wrapped Bitcoin (WBTC) and Ether (ETH). These tokens will be available for use as collateral, to trustlessly borrow up to 75% LTV. Loans product is the backbone of the platform that will enable permissionless borrowing with NFTs.
By integrating Chainlink’s market-leading