Thank you to everyone who joined AMA Blockelite x Drops on 19th May at 3 PM UTC I 10 PM (UTC+7). Here is the recap for those who missed this AMA.
Our special guest today is Darius Kozlovskis – Founder of Drops
Segment 1: Introduction about Drops and Darius Kozlovskis – Founder of Drops
Q1: Can you briefly introduce yourself as well as about the Drops?
Darius Kozlovskis – Founder of Drops: I’m developer, farmer and product manager. Got 7 years of product development background, back in 2017 I was running crypto development agency, 2 years ago I also started a CRM for medical practices. And from early 2020 got back into crypto.
Drops platform solves the problem of valuable and idle NFT assets that can’t be used to generate yield.
By combining NFT fractionalisation, trustless loans and LP tokens, users on Drops platform can extract additional value from their NFTs.
It’s possible through the creation of a new NFT product “Margin NFT”.
Any NFT can be turned into Margin NFT, which then can be used as collateral to obtain a loan or be staked for yield.
Blockelite Host: Which project have you farmed to create a big profit in 2020 and 2021? Can you share?
Darius Kozlovskis – Founder of Drops: One of the biggest ones I guess is YFV from 2020, also Sushi, Alchemix, Quickswap and many others
Q2: “Drops will bring DeFi solutions to NFT”, so what is it? What makes Drops so special?
Darius Kozlovskis – Founder of Drops: The main problem with NFTs that most of them are idle assets in the wallet and they can’t be used within DeFi protocols to generate yield. Our mission is to bring additional value from NFT assets, because every drop counts.
With so many new NFT projects coming out, we want to create an infrastructure that will extend the utility of NFTs and preserve their value.
that involves NFT staking and using NFTs as a collateral
Q3: Which NFTs or NFTs projects are supported by the Drops ecosystem? Do you have plans to support NFTs on other blockchain platforms or only Ethereum?
Darius Kozlovskis – Founder of Drops: We will begin with the most valuable NFTs with established market value, like Punks, Hashmasks, Beeple NFTs and other tier 1 collectibles.
Next we will start including NFTs from games.
Regarding other blockchains we will also deploy on Polygon and BSC
Blockelite Host: what do you think about Solana?
Darius Kozlovskis – Founder of Drops: We believe in it’s tremendous potential in financial assets, which also can be in form of NFT. Currently we’re researching technology
Q4: What are the advantages that can make Drops become a top Defi project? In contrast, what is your weakness? How will you overcome it?
Darius Kozlovskis – Founder of Drops: Our main advantage is our own Loans protocol that is based on battle tested Compound Finance smart contracts. It will serve as a foundation for NFT loans.
We’re also creating a new asset class in NFTs “Margin NFT” it hasn’t been done by anyone else, and it might just be the thing that will bridge NFTs with DeFi
Our biggest weakness ir probably NFT evaluation to create Margin NFTs. Initially it will be limited to only major NFT projects and verified by community
We’re already int alks with some teams though that are building NFT oracles, that will be able to make our system more accurate
Q5: What milestones have Drops achieved and what is the next roadmap for 2021?
Darius Kozlovskis – Founder of Drops: Our latest achievement is the launch of Loans protocol on testnet. Also we’ve made some great progress with product development, really excited for the product launch next month.
In the 3 months we plan to enable using NFTs as collateral in loans, create NFT Vaults, Deploy on Polygon and BSC.
By the end of the year we plan to launch or integrate NFT price oracles which will make our platform more scalable.
Segment 2: Twitter questions (5 winners)
Q1: In your white paper it says “drops users can stake their ERC115 and ERC71 NFT assets in staking pools”. what I want to know, does that mean all NFTs (ERC115 & ERC71) can we stake in DROPS? Or only special NFTs that can be staked there?
Darius Kozlovskis – Founder of Drops: Intially we will limit to popular NFTs that have established market pricing. Next these NFTs would be used to create a “Margin NFT” which involves borrowing NFT fractions and combining them in LP tokens.
Q2: You have partnerships with Biocony and Polygon. What works are you carrying out in your partnership with these 2 projects and will there be new partnerships?
Darius Kozlovskis – Founder of Drops: Polygon and Biconomy are our technology partners, another upcoming partnership is with Chainlink and a few other major NFT projects
Q3: There are 2 options available for NFT to ERC20 minting: “Basic & Lockup” which one do you recommend most to investors and why?
Darius Kozlovskis – Founder of Drops: Basic is recommended if user just want’s to obtain liquidity and lose NFT, in case user has a valuable NFT it makes sense to lock it up to keep ownership
Q4: In you website pitchdeck says Drops is able to Bridge NFT assets from other chains, so can you say which chains exactly? How do you avoid the huge transactions fees of Ethereum ?
Darius Kozlovskis – Founder of Drops: We will have a version of our platform at Polygon and BSC to avoid high gas fees
Q5: What is the role of token in the ecosystem? Where can people currently buy it?what would be its used?
Darius Kozlovskis – Founder of Drops: DOP is at the core of our ecosystem, it has governance power over Loans protocol, Fractionalisation pools and would be used to set NFT prices for Margin NFTs.
There is On-chain and off-chain voting by using the same mechanisms implemented in Curve protocol through veCRV and Compound.
On-chain users can vote on fees and DOP distribution and off chain with veDOP token users can vote on protocol direction.
we will have an IDO on 21st of May, it will be tradable at Uniswap and Gate.io
Segment 3: Live questions (5 winners)
Q1. Why you build your token on Ethereum blockchain? As we all know Ethereum has scalability issues? Any plan to move on other blockchain or mainnet?
Darius Kozlovskis – Founder of Drops: Ethereum still has the biggest userbase and with the help of Polygon’s scaling solution it’s a combination of speed and biggest NFT community
Q2. I have a few questions about the team, how many developers are working on the project?
Darius Kozlovskis – Founder of Drops: we have 8 developers, 2 product teams working on the product
Q3. I love this project is placing importance on the community aspect. It’s something that I think is lacking in a lot of projects. How can us early investors really help DROPS grow before it launches? From providing liquidity to general participation, what different roles are there when it goes live?
Darius Kozlovskis – Founder of Drops: We rely strongly on our community since it will involded in the direction of product development.
Through governance it will be deciding monetary policies as well as evaluate which NFTs we should accept and how we evaluate them
Q4. Which one of these aspects important for you?
1-Increasing Token Price&Value
2-Empowering Platform Development
3-Building Community Trust
4-Expanding Partnership Globally
In what order?
Darius Kozlovskis – Founder of Drops:
- Is Platform development – without it token is just a meme token
- Building community trust
- Expanding with partnerships
- After first 3 are done, token price and value will follow
Q5. Do the token holders have right to participate in the governance of the project??? On what kind of decisions can they vote on about the project??”
Darius Kozlovskis – Founder of Drops: yes we have both on-chain and offchain governance. Users can decide on platform fees, inflation, buybacks and distribution