Drops DAO Announces Partnership with FODL
Drops DAO is excited to announce a partnership with FODL, which will support leveraged trading position NFTs as collateral on Drops Loans.
Non-fungible tokens representing financial positions are a rapidly-growing use case of NFT technology — and we’re delighted to be assisting with their integration into the wider world of decentralized finance.
FODL is a platform that combines several money “legos” of the DeFi ecosystem — flash loans and collateral lending platforms, combined with proprietary position protection bots and cross-asset price indexing — to build a fully decentralized leverage trading platform.
FODL enables traders to utilize leverage for their trades without paying a funding rate. This leverage is derived from existing DeFi building blocks, Compound and Aave. In essence, traditional DeFi borrow/lend platforms are turned into money markets providing users with leverage by margining your assets to yourself.
The FODL partnership will enable users to take their FODL leveraged position NFTs and use them within Drops Loans as collateral. This will allow FODL users to borrow funds against their active trading positions, providing them with the capacity for additional utility and returns.
Financial position NFTs are typically easy to value and have great liquidity, making their integration into Drops both reliable and valuable to all.
About Drops DAO
Drops DAO provides loans for NFT and DeFi assets, supplying them with much-needed utility.
The protocol uses lending pools that enable any type of NFT asset to be used as collateral — from collectibles and metaverse items, to financial NFTs. Users can leverage their idle NFTs and DeFi tokens to obtain loans and earn extra yield.