Lending Pools
Lending pools are at the core of the Drops DAO lending model. Each lending pool consists of assets that can be used as collateral and tokens that can be borrowed.
When a user supplies assets, the oracle determines collateral value. Depending on the asset type, the user can then borrow up to 50% of its value.
By using isolated pools, lenders can choose to which particular NFT collections they want to be exposed to.
Loans have no expiry dates and can remain solvent as long as the user does not exceed the borrowing limit. Interest rates are calculated algorithmically based on the utilization rate of an asset.
Lending pools structure
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