An initial decentralized exchange offering (IDO) on Polkastarter is about to begin for a platform aiming to bring decentralized finance (DeFi) features to non-fungible tokens (NFT).
The Polkastarter IDO for Drops will go live on May 21 according to an announcement today. The public launch of the DOP token will occur exclusively on Polkastarter, and as with previous IDOs, there is a whitelisting process for those that wish to participate.
The tokens will be launched at a price of $0.60 with a total of 333,333 DOP available through the IDO totaling $200,000. The maximum allocation per person will be $210 and buyers must hold at least 250 POLS tokens in either ERC-20 or BEP-20 wallets.
Polkastarter is looking to repeat previous IDO successes. On April 28, tokens for the Binance Smart Chain NFT platform Refineable sold out in five minutes, overloading the platform due to the unprecedented demand.
DeFi yield farming for NFTs
Drops already held a private investment round earlier this month which earned it $1 million from investors including Axia8 Ventures, Bitscale Capital, Blocksync, AU21, x21, D64, Genblock, and Drops Ventures.
The project aims to build the infrastructure for owners to stake their own NFTs to earn “dPoints.” These are tokens that can be used to acquire new NFTs on the Drops platform. It’s an attempt at yield farming for NFTs which platforms such as MEME already offer.
Drops is also working on a “dNFT” protocol that will allow NFT owners to put their tokens into digital vaults and convert them into ERC-20 tokens, which can then be traded on decentralized exchanges.
The platform will provide the foundation for trustless NFT smart contract loans and yield farming where they can be used to supply liquidity pools without the need to sell the original NFT.
DOP tokens will be used as one of the primary means of payment on the Drops platform. In addition to providing governance rights, holders will also be granted access to private NFT drops and staking rewards for liquidity provisions.
POLS token price outlook
Polkastarter’s native token, POLS, has dumped 14% on the day to $2.85 according to CoinGecko. Despite being a requirement for many new token offerings on the DEX, it has been sliding since its all-time high of $7.50 on Feb. 16.
POLS has made 360% since the beginning of the year but the past three months have been a clear downtrend for this token.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.