Drops Ownership Power
What is Drops Ownership Power?
Drops (DOP) is a decentralized finance (DeFi) platform that aims to bring infrastructure to non-fungible tokens (NFTs), offering essential utility to unused NFT assets. The platform is built on Polygon's second-layer scaling solution and was developed by the Node Runners team. Its creators seek to merge NFTs and DeFi, creating a platform that focuses on NFT assets and their use.
Drops enables users to use their NFT assets to receive trustless loans and yield farm, which reduces the opportunity cost of long-term storage. In addition, the platform hosts limited-edition artwork releases that users can participate in via a raffle, ensuring fair competition and increasing accessibility.
Darius Kozlovskis, the founder and CTO of Vizituentr, and Nikita Ufimcev, a former employee of Morgan Stanley and Goldman Sachs, co-founded Drops. The goal of the creators is to build an infrastructure that will preserve the value of NFTs in the long term, allowing users to generate income from their non-fungible assets.
Drops' unique approach lies in integrating NFT assets with the DeFi ecosystem, using the dNFT fractionalization protocol. This protocol combines NFT assets and converts them into ERC-20 tokens. With dNFTs, users can access fungible liquidity backed by NFT assets, borrow cryptocurrency using dNFT tokens as collateral, and profit from assets by participating in real crop growing strategies via dNFT vaults.
DOP is the utility token of the Drops' ecosystem and acts as the primary method for buying and selling NFTs. It is used to pay out both liquidity mining rewards and cashback for purchases made on the platform. Users can stake DOP tokens to earn non-transferable coupons called "dPoints." Additionally, users have the right to vote on the collection and distribution of DOP, and DOP will be involved in participation in NFT raffles in the future.
The DOP token is the core of the entire ecosystem, managing the main functionality of the Drops platform, including the loan protocol and fractionalization pools. Together with the original Node Runners (NDR) token, DOP will be used in a hybrid governance model. An initial dex offering (IDO) will occur on Polkastarter on May 21, with $200,000 of DOP available through the sale of 333,333 tokens at an IDO price of $0.60 per token.
Drops is built on the Ethereum Virtual Machine (EVM) and Polygon network, with DOP tokens secured by their parent blockchain, Ethereum. Drops supports second-layer Polygon scaling to facilitate transactions, using a network of proof-of-stake (PoS) validators to secure assets. The platform's loan protocol is based on Compound Finance smart contracts, allowing users to generate yield from NFTs while creating trustless loan solutions with NFTs as collateral.
In summary, Drops is a promising DeFi platform that seeks to bring infrastructure to NFTs. With its unique approach, DOP utility token, and strong security measures, Drops has the potential to become a major player in the NFT and DeFi space.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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