With the recent launch of our mainnet, we’ve deployed 4 different NFT collections that you can leverage as collateral to obtain loans on our platform. These are all part of the Yuga Labs family — BAYC, MAYC, CryptoPunks, and Otherdeed.
Our product is live and currently running, with users already taking advantage of their NFTs to take out loans. To help guide you through the process, we’ve created a simple step-by-step tutorial below.
There’s also a video on our YouTube channel walking you through each step — check it out below:
Tutorial
The process is fairly simple and straightforward — all of the steps are outlined below from start to finish.
1. Navigate to https://drops.co/lending/ and select Pool #2 to be taken to the Yuga Labs pool
2. Next, choose the NFT you want to supply under the “Supply” section on the left. For this example, we will use a MAYC NFT.
3. Make sure you are on the “Supply” tab in the popup window and click Approve — confirm the transaction through your MetaMask wallet to proceed.
4. Once the transaction goes through, you’ll return to the popup screen. Click NFT, select your chosen asset, and click Supply. MetaMask will appear again, so follow the steps.
5. Now, you’ll be back on the main screen — the next step is to enable your NFT as collateral. Under the “Supply” section, click the toggle button under “Collateral” next to your respective NFT.
6. A popup window will appear — click Enter Market to proceed. Again, you will need to confirm the transaction in MetaMask to continue.
7. Another popup will appear asking you how much you want to borrow. In this example, we will select USDC as our asset of choice. Enter the amount and click Borrow.
8. You’re all set! With your NFT now posted as collateral, you can begin accumulating $DOP rewards. To check how much you’ve earned, head to the top-right-hand side of the page next to the profile avatar.
A popup will display your wallet and unclaimed balance, including the current $DOP price. If you wish to do so, you can claim your $DOP by pressing the blue button.
9. If you want to repay your loan, head over to the “Borrow” section on the right-hand side of the main screen. The below window will appear, where you can select the amount of USDC you want to repay.
Click Repay to continue.
10. Once you’ve repaid the loan, you can now claim back your NFT. Select your NFT collection under the “Supply” section on the main page — the below window will now appear. Select the NFT you want to claim and click Withdraw.
The NFT will now be sent back to your wallet!
That’s it! You now know how to take out a loan by using your NFTs as collateral on Drops DAO. Check out our platform today and start using it for yourself.
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.
