Visit https://drops.co/loans/ and connect to the Drops Loans dApp via your wallet. Click on the asset you wish to deposit from within the “Supply” column. Select the quantity of the asset you wish to deposit, then submit your transaction.
Once the transaction confirms on the blockchain, your deposit will appear within the dashboard and automatically begin generating interest.
What are the limits on deposits?
There are no minimum or maximum limits on the quantity of an asset that can be deposited into the protocol. It is, however, important to account for any transaction fees associated with the process. These may outweigh the rewards for smaller deposits.
There are also no time limits for the duration of a deposit – you can deposit an asset for as little or as much time as you wish.
How much interest will I earn?
Those holding a stake of deposits within Drops Loans will automatically earn a variable interest return during the time it is supplied to the protocol. This interest rate is determined algorithmically and is affected by both supply and demand factors.
The current rate of return that an asset is paying is viewable within the dashboard, within the “Supply” column.
Where does the yield come from?
Yield on assets deposited in the Drops Loans protocol come from the interest paid by borrowers. This yield is distributed to depositors in the same asset they are supplying to the protocol.
How do I claim my interest/yield?
Your yield is added directly to your share of the respective asset’s pool. This can be claimed at any time by withdrawing the asset from the pool, in the same way you would withdraw your deposit.
To do this, click on the asset in the “Supply” column and switch to the “Withdraw” tab. Enter the amount that you wish to withdraw and submit the transaction.
Liquidity Mining (DOP) Rewards
A total of 2,420,000 DOP (16.1% of total supply) tokens over the span of 5 years will be allocated across asset markets as liquidity incentives.
To begin, these will be distributed to those supplying liquidity to the Drops Loans protocol, at varying rates between assets.
Claiming DOP Rewards
Accrued liquidity mining rewards can be viewed in real-time by clicking the wallet information button in the dApp dashboard.
To claim your accrued DOP, click on the “Claim X DOP” button in the pop-up window and sign the transaction.
How do I withdraw my deposit?
To withdraw your deposited funds, click on the asset within the “Supply” column and select the “Withdraw” tab. Enter the quantity of the asset that you wish to withdraw and submit the transaction.
Beware that withdrawing assets may lower your loan-to-value ratio. If you have any active loans, you may need to close these to withdraw the desired amount.
How do I stop an asset from being used as collateral?
If you no longer want an asset to be used as collateral, find the asset in the “Supply” column and toggle the collateral switch to the “off” position. Click “Exit Market” in the pop-up window and submit the transaction.