Drops Integrates Chainlink Price Feeds to Secure NFT-Backed Loans and Margin Trading
Drops Integrates Chainlink Price Feeds to Secure NFT-Backed Loans and Margin Trading.
By integrating Chainlink’s market-leading decentralized oracle network, Drops ensures that loans are accurately and securely priced against various cryptocurrencies or stablecoins. This integration will supports the following Chainlink Price Feeds on Ethereum: WBTC, ETH, USDC, ENJ, UMA and additional stablecoins.
Drops is using Chainlink Price Feeds for all major collateral assets involved in Loan positions. Chainlink Price Feeds provide us with precise and up-to-date price data for all supported non-NFT assets. Through Chainlink Price Feeds, we can reliably determine the maximum borrowable quantities of ETH and Ethereum-based tokens (such as stablecoins) against a user’s NFT-based collateral.
The same Chainlink Price Feeds will also be used to monitor the loan-to-value (LTV) ratio of users to ensure it’s maintained throughout the duration of the loan.
About Chainlink
Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain.
About Drops
Drops brings DeFi-style infrastructure to NFTs, adding much-needed utility to idle NFT assets. Users can leverage their NFTs to obtain loans and earn real yield, reducing the opportunity cost of holding NFTs long-term.
