The Drops team is currently working hard in silence to deliver exciting infrastructure around NFT — but when can you expect to see these services roll out?
To give everyone a clear idea of our development timelines, we’ve put together this quick product roadmap so you know what you can expect from Drops this year.
Each stage of the product roadmap will build a foundation for the next piece, in a sequence that we believe will help everybody to get the most out of their NFT assets, in the fastest time possible! To assist with this, our team has also recently expanded to seven talented developers.
Let’s get into it:
April: NFT Staking — stake NFTs to farm NFTs
The very first deliverable we’re working on is NFT staking. Drops users will be able to stake their ERC115 and ERC721 NFT assets to earn dPoints — non-transferrable tokens which they can then use as coupons throughout the Drops platform. These will be eligible for use on raffle tickets with prizes such as NFTs from other projects, games and more.
This feature will also provide users with the ability to generate returns on their NFT assets while we build the more complex tools which will enable NFT loans and vaults.
NFTs will be allocated to one of three staking pools, depending on their relative value. The higher-value staking pools will be given a larger allocation of dPoints rewards to share among stakers.
May: dNFT protocol — undercollaterized NFT liquidity
In May we aim to have completed the “dNFT” protocol. This will be the underlying infrastructure that future NFT loans and vaults are built upon.
The dNFT protocol will make NFTs fungible by locking them up and converting them to representing ERC20 tokens called “shards”. These ERC20 shardscan then benefit from being included in the rest of the DeFi ecosystem — this includes things like improved liquidity and fair valuation via decentralized exchanges (DEXes) and more.
Users will be able to reclaim the same NFT assets at any time by supplying the shards back to the dNFT contract, along with any fees or interest owed.
To improve the liquidity of NFT assets we will introduce undercollateralized NFT liquidity.
It will be possible to supply ETH to create liquidity without the ownership of NFT shards tokens. This way anyone can contribute to the liquidity of NFT assets without having to own the NFT or its shards.
June: Trustless NFT Loans
This is where it starts to get interesting! Once the dNFT infrastructure is up and running, we will be building our NFT loan solution, which we aim to deliver by June.
These trustless NFT-backed loans will enable users to supply dNFT shards as collateral, to borrow a range of cryptocurrency assets such as:
· ETH
· USDC, DAI, USDT
· DROPS
· NDR
The NFT loan smart contract will be based upon the well-tested and proven Compound Finance smart contracts, modified to enable the use of NFT assets via our dNFT solution.
August: NFT Vaults — Yield farming with NFT
Finally, in August, we plan to release our NFT vaults, which will also leverage the dNFT protocol. NFT Vaults are designed to enable NFT owners to indirectly yield-farm using their NFT assets, rather than having to own traditional fungible tokens.
In a similar way to how we facilitate NFT loans, NFT Vaults will use dNFT shards to borrow other assets (such as stablecoins) and supply them to yield-farming protocols such as Yearn Finance.
We believe this solution is the first of its kind, providing a reliable way for NFT holders to earn yield, without needing to sell their NFTs for other assets.
Summary
Overall, we are thrilled to be developing some of the most exciting infrastructure in the NFT space, which will provide much-needed utility to non-fungible assets.
For each month from April to August 2021, we aim to have an extra piece of the puzzle completed for the Drops platform. NFT staking, the dNFT protocol, NFT loans and NFT Vaults are all on the way!
News and Updates
To keep up to date with the above products and latest releases, follow the links below:
Website: https://drops.co/
Twitter: https://twitter.com/dropsnft
Telegram: https://t.me/drops_nft
Discord: https://discord.gg/FqZKAs6pmD
