Darius Kozlovskis explains Drops' DeFi loans for NFTs

0:23and there's so many possibilities now that we have these functionalities inside of the nft world and i'm excited to hear what drops this building i know you're working on some revolutionary innovations in nfts i would love for you to just kick it off you know with us for just a high level overview of you know what is the main focus of drops and what are some of the solutions that

0:43you're bringing to the table in the cryptocurrency world yeah of course so all drops is a platform that brings more utility to the nft assets and that's done through trustless nft loans and nft staking so eventually users can come with their nfts to our platform and well they can obtain loan in a trustless way without any permissions

1:10or use them to stake and earn additional income from it so yeah that's that's actually our like main main goal is just to enable users to get as much value as possible from their nft assets definitely and nfts have exploded you know in the last six months mainly but you know even in the last 12 months and throughout 2020 they really started to gain a lot

1:36of traction do you see a lot of problems that need to be solved in the nft market right now you know considering it's growing so quickly oh yeah definitely i mean the main issue is like with the collectible nfts for example if the nft itself well doesn't get that does get really doesn't get enough utility it that it can be used anywhere then

2:01with time it quite loses its value and yeah of course if there is a community backing it so it can be supported but in most cases like after the hype cycle well those nfd assets become well pretty much useless and yeah we're trying to also kind of prevent that and extend the utility of them and that's done through yeah for our solutions

2:32but yeah so that's that's from the that's from the collectible assets part there's also nft games ftb's games and we're going to see explosion of them probably like this year and next year and could and games themselves they develop kind of like closed ecosystem however since it's an nft it could be used at any place

2:58at the blockchain so we're also helping here for game assets to extend their usage not just within the game but if it's for example like a really valuable character or a really helpful piece of land so while it's idle not doing anything it could be put our platform and generate extra yields from it definitely and it's exciting to be able to turn things

3:25into income generating assets especially just digital items that you know before they were just sitting there and this is something that's fairly new you know nfts have only just become popular to the mainstream in the most recent months but now including you know financial products into nfts is taking it to the next level which i'm sure people are happy with if

3:47they're able to generate income i know that there are you know there's a couple people that have been talking about hey we need to make use of these nfts and provide value in different ways and adding in decentralized finance functionality into it is you know one of the priority use cases right now there are some other platforms that are trying to do this as well is

4:08there something unique about drops or you know something different from other platforms that are trying to work with nfts that might give drops a competitive advantage moving into the market yeah i would say our the main difference how we approach well there are solutions for nfts for loans and for fractionalization and current approaches they include like

4:33peer-to-peer loans so just like we had well before before even this defy stuff we had on the internet this peer-to-peer loans where you request a loan and someone funds it so it works pretty much the same with one of these that other projects are implementing however we're taking a step further and by creating a trustless way to obtain a loan and

5:00that's it includes quite complex solution involving like margin nfds that's something maybe i can elaborate a bit later but that allows us well for any user to come to a platform and we would support a wide variety of nfts and then without asking the permission obtain a loan that this quite quite fear to the value of the nft and

5:28the market so yeah that's that's really one thing and secondly like since we allow to obtain this these trustless loans it's also possible to build like vaults that would include farming strategies and generally and this in turn would enable for nfd to generate yield so probably

5:57yeah there are solutions on the market with merging d5 with nfts and yeah they're all exciting and we're just trying to take what is best what's available put it all together and create a solution that can yeah that can benefit users even more definitely darius and i'm glad that you mentioned some of that because i was going to ask you about you know the main products upon

6:24the launch of drops in terms of you know somebody that hasn't been involved in decentralized finance before trying and they've now bought their first nft trying to find out how they can turn this into an income generating asset and use the financial products with their nfts you know you mentioned margin loans there you mentioned yield farming

6:44Can you just give like a high level overview of like the primary financial products that you're going to be delivering first upon the launch in terms of loans and derivatives yeah so what first first we're going to launch just simple loans for each erc20 tokens which will serve a foundation for the loans protocol so that is saradin test net and

7:08probably next month yeah we have scheduled it for the mainnet then there is there are a couple more things involved here which is fractionalization and margin nft protocol so in third quarter of this year that's also going to be live and yeah that's when

7:35users will be able to come to the platform and create a margin nft and then this margin ft in turn can be used yeah in loans and staking and vaults yeah so that's that's how it will work that's really exciting and when you launch are you planning on you know do you think that incentivization of the returns just from the yield

8:02farming will be enough to incentivize early adopters to jump on drops early on are you also planning other marketing strategies or do you just expect organic growth to happen on the platform yeah of course well would we do would we just expect at some extent some organic growth but that won't be really a primary thing well for we do offer something really

8:27valuable to nfd projects and we would really rely on this marketing for the partnerships because well what we offer for nft projects is obviously extend the utility of their nfts also would have an option to list their governance tokens at our loans protocol which is also quite beneficial and yeah so

8:56one area of marketing yeah would be really through the partnerships second area well would be also through the no we'll be launching our own nfts and well these entities will have some utility at the platform so that would also bring us some additional exposure so that's that's planned for now and as we as we keep growing we'll

9:25we have the ambassadors program so we'll we would be able to create an independent communities well from different countries around the world yeah actually yes we already have communities in russia and turkey china and vietnam and yeah after the launch we'll just keep adding more interesting incentives to keep them engaged and active within our community

9:57definitely and that's really exciting for you to add other projects governance tokens into the you know into the loans i think that will help a lot with the partnerships and bringing the communities together because a lot of these other d5 projects they really rely on strong communities and they do have strong communities so being able to partner with that

10:16should help drops you know in the long term and you mentioned building your own nfts i'm curious about any partnerships that you may have or you have in the works in terms of on the nft side are you looking to partner with artists or have specific collections and stories or how are you going to generate more attraction to the nfts yeah we did partner with

10:44several artists from the from the community but the nft itself that we're launching well it's like genesis jobs nft and it will be it will just 100 unique pieces that will be sold and yeah they will have their own nft staking pool and all fractionalization and yeah they'll be also usable as as a way

11:13to obtain our governance tokens so that's from one way but you also have some well projects in the pipeline already that they're interested to get on board with jobs many of them are from polygon and so yeah i can't really drop the names too early but yeah in the next coming weeks we have a pretty good lineup

11:40and yeah we'll start going well once we start launching it well there will be there'll be more visibility to our project and hopefully things work out for jobs definitely no i'm excited to see those future partnerships as you as you launch the platform and everything is going to be coming really quick here i know you have some

12:07near-term deadlines and you did mention the governance token you know for the nft genesis drops nft that you're going to create and how that ties into the governance token they know the drops dop token could you talk a little bit more about the token you know is it required to purchase the nfts does it have to be used within the loans how else is it used within

12:27the drops ecosystem and does it create a sustainable ecosystem yeah so dlp token is it is actually at the core of our governance system and since we have i would say two two main products which is this ft margins with fractionalization and loans so we'll have on-chain governance

12:53to manage the token emission to for example incentivize some liquidity liquidity pairs or incentivize more certain tokens at the loans protocol so yeah it will have like this wait for the wait for the governance then another another thing is the evaluation of the nft value so

13:23so governance tokens will be also involved in setting the like price ranges of how much nft can be worth in order to but to support this margin fd system and yeah lastly the fees that crude from the whole protocol they'll be going to treasury and the token holders can basically vote what to do with of

13:51those funds in the treasury should they use for like for buybacks and distribution or should they be put like as rewards to certain programs so yeah that's that would be the role of the token and the ecosystem and in the in the long run probably it will have a pretty heavy

14:17pretty heavy weight if once nft space becomes more saturated then and yeah they will want to have their nfts listed as accepted collateral let's say or when nfd projects will want to have their tokens listed as collateral well the dop will be the token that will create those permissions

14:44and yeah we can hope only that will be the one of interest and utility definitely and darius can you give me a timeline in terms of i know the token launches soon and then the first launch of the platform you know what's the short-term timeline to get all of these things out into the public

15:11yeah so on 21st of may we're going to have the ideal at polka starter which will be like followed the same day by listing at some one of the decentralized exchanges and then in somewhere in the middle of june well june we will launch the loans protocol on mainnet and then shortly after will be launched also

15:38on polygon and yeah by the end of the third quarter we plan to deploy the nft staking the marginal fts to the yes to the maintenance as well great and for the viewers that are looking to get involved with drops and follow along for the nft launch and the token launch what's the best way for them to get involved with the community and to learn

16:05more yes just go over to the website it's drops.co and also you can follow us on twitter and it's at drops nft you can join our telegram chats also we have discord group and yeah we have a friendly community and you can ask anything and i might even well we have moderators that actually answer questions

16:32i also hang in and hang out there so yeah feel free to come sounds great darius i will leave those links in the description box below as well for the viewers thank you so much for taking the time to come on to talk about drops i'm excited for your innovations in the nft space i'll be following along and let's follow up in the near future yeah yeah definitely

16:56so thank you ashley for this interview you