{"id":"drop","title":"Drop","content":"**Drop** is a liqud [staking](https://iq.wiki/wiki/staking) protocol for Interchain assets that enables users to earn [staking](https://iq.wiki/wiki/staking) rewards while maintaining liquidity of their staked assets. As a member of the Lido Alliance, Drop transforms staked capital into liquid tokens (dAssets) that can be utilized across various [DeFi](https://iq.wiki/wiki/defi) applications while continuing to generate [staking](https://iq.wiki/wiki/staking) rewards.  [[1]](#cite-id-fqcKjtB64Z)\n\n![](https://ipfs.everipedia.org/ipfs/QmVi6RRar8hnKjqfZJ97rkLX5sD8RcLrkbNt5aNk7Azvzo)\n\n## Overview\n\nDrop was developed to address the challenge of capital inefficiency in proof-of-stake networks, where staked assets typically become illiquid during the [staking](https://iq.wiki/wiki/staking) period. The protocol operates on Neutron, leveraging the Inter-[Blockchain](https://iq.wiki/wiki/blockchain) Communication (IBC) protocol to provide liquid [staking](https://iq.wiki/wiki/staking) services [across](https://iq.wiki/wiki/across) multiple [blockchain](https://iq.wiki/wiki/blockchain) networks in the Cosmos ecosystem.\n\nAs part of the Lido Alliance, Drop supports initiatives to decentralize critical [Ethereum](https://iq.wiki/wiki/ethereum) ecosystem components such as bridges and data-availability layers. It also contributes to innovation and experimentation that benefit both Lido and the broader [Ethereum](https://iq.wiki/wiki/ethereum) network. Additionally, Drop promotes the distribution and adoption of [wrapped staked ETH (wstETH)](https://iq.wiki/wiki/wrapped-steth-wsteth) across interconnected [blockchains](https://iq.wiki/wiki/blockchain), including its use as restaking collateral within the Interchain ecosystem. Drop aims to strengthen the economic viability of sovereign [blockchain](https://iq.wiki/wiki/blockchain) economies by transforming stagnant, frozen capital into productive assets. The protocol's architecture utilizes Neutron's Interchain Transactions (ICTX) and Interchain Queries (ICQ) modules, enabling it to provide trust-minimized liquid [staking](https://iq.wiki/wiki/staking) services that can scale with minimal additional overhead and risk.\n\nDrop's core innovation lies in its ability to mint liquid [staking](https://iq.wiki/wiki/staking) receipt tokens (dAssets) using the Token Factory standard, allowing users to maintain liquidity while earning [staking](https://iq.wiki/wiki/staking) rewards and potentially additional yield through various DeFi applications.  [[1]](#cite-id-fqcKjtB64Z) [[12]](#cite-id-KDBcaGEm4H)\n\n## Architecture\n\nDrop's technical architecture is built on Neutron as an Integrated Application, utilizing several key components:\n- **CosmWasm** [**smart contracts**](https://iq.wiki/wiki/smart-contract)**:** The core protocol logic is implemented as CosmWasm contracts that control the flow of assets between multiple [blockchains](https://iq.wiki/wiki/blockchain)\n- **Inter-Blockchain Communication (IBC):** Enables secure cross-chain communication and asset transfers between Neutron and other Cosmos-based chains\n- **Interchain Transactions (ICTX):** Allows Drop to initiate transactions on remote chains from Neutron, essential for staking and unstaking operations\n- **Interchain Queries (ICQ):** Enables Drop to query data from remote chains, providing real-time information about validator performance and network conditions\n- **Token Factory:** Used to mint and manage dAssets according to the Token Factory standard on Neutron  [[4]](#cite-id-Gf9jWsPWYi)\n\n## Products\n\n![](https://ipfs.everipedia.org/ipfs/QmZBumqXYmG5CKQCP6gaezj5PzNWGFkkqqiN7ACkaFg1VL)\n\nDrop offers several liquid [staking](https://iq.wiki/wiki/staking) tokens (dAssets) that represent staked positions on different networks:\n- **dATOM**: Liquid [staking](https://iq.wiki/wiki/staking) token for Cosmos Hub's [ATOM](https://iq.wiki/wiki/atom)\n- **dTIA**:  Liquid [staking](https://iq.wiki/wiki/staking) token for Celestia's TIA\n- **dNTRN**: Liquid  [staking](https://iq.wiki/wiki/staking) token for Neutron's NTRN\n- **deINIT**: Liquid [staking](https://iq.wiki/wiki/staking) token for INIT Labs' INIT [[2]](#cite-id-1agv4ViUaE)\n\n### dNTRN\n\ndNTRN is a liquid staking token developed by Drop for the Neutron network, introduced alongside the network's transition into a sovereign proof-of-stake (PoS) chain through the Mercury upgrade. This transition enables native staking, liquid staking, and expanded DeFi functionality.\n\ndNTRN allows holders of NTRN, Neutron’s native token, to participate in staking without locking up their assets. Users receive dNTRN in exchange for staked NTRN, maintaining liquidity while continuing to earn staking rewards. The asset can be used within DeFi applications—such as lending, liquidity provision, and trading—while still contributing to network security.\n\nThe initial deployment of dNTRN is supported by the Neutron DAO through a strategic liquidity initiative, including 225 million NTRN staked with Drop, 25 million paired with dNTRN on Astroport, and 5 million allocated to Mars Protocol to support lending markets. These measures are designed to ensure liquidity, reduce slippage, and facilitate integration into the broader DeFi ecosystem.  [[10]](#cite-id-gruZWNfFeu)\n\n### deINIT\n\ndeINIT is a liquid staking derivative developed by Drop on Initia's L1 decentralized exchange (DEX), designed to improve capital efficiency within decentralized finance (DeFi). It consolidates staking rewards and trading fees into a single yield-bearing asset by tokenizing staked LP positions in the INIT-USDC pool (80% INIT, 20% USDC).\n\nTraditional liquid staking solutions often separate staking from liquidity provision, resulting in partially productive capital and misaligned incentives. In contrast, deINIT integrates both functions, enabling 100% of the LP position to earn staking rewards while participating in DEX liquidity.\n\nUsers can mint deINIT either by depositing INIT (with 20% converted to USDC to form a balanced LP position) or by staking pre-existing INIT-USDC LP tokens. This approach compounds both trading incentives and staking yields automatically, reducing the need for manual intervention.  [[9]](#cite-id-JKEeBS9T5E)\n\n## Features\n\nDrop's protocol offers several key features that differentiate it in the liquid [staking](https://iq.wiki/wiki/staking) market:\n- **Auto-compounding rewards**: [Staking](https://iq.wiki/wiki/staking) rewards are automatically reinvested, maximizing returns without manual intervention [[3]](#cite-id-5SPUGWlNST)\n- **Immediate liquidity**: Users can transfer, sell, or utilize their dAssets at any time, unlike traditional [staking](https://iq.wiki/wiki/staking) which locks assets for a period [[3]](#cite-id-5SPUGWlNST)\n- **Composability**: dAssets can be deployed across various [DeFi](https://iq.wiki/wiki/defi) applications for additional yield opportunities [[4]](#cite-id-Gf9jWsPWYi)\n- **Airdrop eligibility**: Users remain eligible for ecosystem [airdrops](https://iq.wiki/wiki/airdrop) while [staking](https://iq.wiki/wiki/staking) through Drop [[3]](#cite-id-5SPUGWlNST)\n- **Validator diversification**: Assets are distributed across multiple validators, reducing risk compared to [staking](https://iq.wiki/wiki/staking) with a single [validator](https://iq.wiki/wiki/validator) [[5]](#cite-id-NRJ9h6usGa)\n- **Real-time monitoring**: The protocol employs 24/7 monitoring and alerting for all critical components to ensure security [[4]](#cite-id-Gf9jWsPWYi)\n\n## Ecosystem Integration\n\nAs a member of the Lido Alliance, Drop benefits from collaboration with one of the largest liquid [staking](https://iq.wiki/wiki/staking) providers in the [blockchain](https://iq.wiki/wiki/blockchain) space. This alliance was confirmed through a Lido DAO vote, positioning Drop as a strategic partner in expanding liquid [staking](https://iq.wiki/wiki/staking) solutions to the Interchain ecosystem. [[6]](#cite-id-tLTlpSdODr)\n\nDrop has established integrations with numerous [DeFi](https://iq.wiki/wiki/defi) protocols across the Interchain, including:\n- **Astroport**: Permission less Concentrated Liquidity (PCL) and [Automated Market Maker (AMM)](https://iq.wiki/wiki/automated-market-maker)\n- **Margined**: Vault strategies\n- **Apollo**: Vault strategies\n- **Shade**: AMM, Lending, and [Stablecoin](https://iq.wiki/wiki/stablecoin) services\n- **Fission**: Yield splitting\n- **Levana**: Perpetual contracts\n- **Osmosis**: [Uniswap](https://iq.wiki/wiki/uniswap) V3-style [AMM](https://iq.wiki/wiki/automated-market-maker)\n- **Mars**: Lending, Margin trading, and Perpetual contracts [[4]](#cite-id-Gf9jWsPWYi)\n\n## Use Cases\n- **Earning staking rewards without lockups**: Users can stake assets and earn rewards while maintaining the ability to exit positions at any time [[3]](#cite-id-5SPUGWlNST)\n- **Yield farming**: dAssets can be provided as liquidity in [AMMs](https://iq.wiki/wiki/automated-market-maker) or yield farming protocols to earn additional rewards [[7]](#cite-id-Bp9vvBbstP)\n- **Collateralized lending**: Users can use dAssets as [collateral](https://iq.wiki/wiki/collateral) in lending protocols to borrow other assets while still earning [staking](https://iq.wiki/wiki/staking) rewards [[4]](#cite-id-Gf9jWsPWYi)\n- **Trading and arbitrage**: The liquid nature of dAssets allows for trading opportunities between the dAsset and its underlying token [[4]](#cite-id-Gf9jWsPWYi)\n- **Participating in governance**: dAsset holders can potentially participate in the governance of both Drop and the underlying networks [[3]](#cite-id-5SPUGWlNST)\n\n## Droplets Program\n\n![](https://ipfs.everipedia.org/ipfs/QmSBh5nDShhwjJwu61GfL1TJMBKD4v3B2yiCF3QLuJ319Q)\n\nThe Droplets Program is an initiative that allows users to earn DROP tokens (the native token of the Drop protocol) by using dAssets across various [DeFi](https://iq.wiki/wiki/defi) applications. Users earn Droplets points for participating in supported activities, which can later be redeemed for DROP tokens upon the token launch. [[8]](#cite-id-gbl7uaCcVJ)\n\nActivities that earn Droplets include:\n- [Staking](https://iq.wiki/wiki/staking) assets through Drop\n- Providing liquidity with dAssets\n- Using dAssets in supported [DeFi](https://iq.wiki/wiki/defi) protocols\n- Participating in specific campaigns and promotions [[7]](#cite-id-Bp9vvBbstP)","summary":"Drop is a liquid staking protocol for Interchain assets, part of the Lido alliance, offering dAssets like dATOM and dTIA.","images":[{"id":"QmdGMkGFDgKEy2kvGYTGGHAP7NUVgUwAyot5FRPHdqgYZZ","type":"image/jpeg, image/png"}],"categories":[{"id":"defi","title":"defi"}],"tags":[{"id":"Blockchains"},{"id":"Ethereum"},{"id":"Protocols"},{"id":"Developers"},{"id":"Organizations"}],"media":[{"id":"QmVi6RRar8hnKjqfZJ97rkLX5sD8RcLrkbNt5aNk7Azvzo","name":"banner-ada0282db8285815ecc32450a5156229.webp","caption":"","thumbnail":"QmVi6RRar8hnKjqfZJ97rkLX5sD8RcLrkbNt5aNk7Azvzo","source":"IPFS_IMG"},{"id":"QmSBh5nDShhwjJwu61GfL1TJMBKD4v3B2yiCF3QLuJ319Q","name":"0_QzGut3llfXi0W7sH.webp","caption":"","thumbnail":"QmSBh5nDShhwjJwu61GfL1TJMBKD4v3B2yiCF3QLuJ319Q","source":"IPFS_IMG"},{"id":"QmZBumqXYmG5CKQCP6gaezj5PzNWGFkkqqiN7ACkaFg1VL","name":"1_UoX2PXqkf0OycpKrp91Pdw.webp","caption":"","thumbnail":"QmZBumqXYmG5CKQCP6gaezj5PzNWGFkkqqiN7ACkaFg1VL","source":"IPFS_IMG"}],"metadata":[{"id":"references","value":"[{\"id\":\"fqcKjtB64Z\",\"description\":\"Drop Docs: Introduction\",\"timestamp\":1747148655963,\"url\":\"https://docs.drop.money/\"},{\"id\":\"1agv4ViUaE\",\"url\":\"https://app.drop.money/stake\",\"description\":\"Drop Staking Platform\",\"timestamp\":1747148655963},{\"id\":\"5SPUGWlNST\",\"url\":\"https://docs.drop.money/#dassets\",\"description\":\"dAssets Documentation\",\"timestamp\":1747148655963},{\"id\":\"Gf9jWsPWYi\",\"url\":\"https://www.drop.money/\",\"description\":\"Drop Website\",\"timestamp\":1747148655963},{\"id\":\"NRJ9h6usGa\",\"url\":\"https://docs.drop.money/validators/overview\",\"description\":\"Validator Documentation\",\"timestamp\":1747148655963},{\"id\":\"tLTlpSdODr\",\"url\":\"https://snapshot.org/#/lido-snapshot.eth/proposal/0x946c9498e76cde24a1475dd786cb119bbfab2b3b5ce95b5177c0818bed91e20b\",\"description\":\"Lido Alliance Proposal\",\"timestamp\":1747148655963},{\"id\":\"Bp9vvBbstP\",\"url\":\"https://droplets.drop.money/\",\"description\":\"Droplets Program\",\"timestamp\":1747148655963},{\"id\":\"gbl7uaCcVJ\",\"description\":\"Medium: Introducing the Droplets Program — The Ultimate Guide to Earning DROP\\n\",\"timestamp\":1747148655963,\"url\":\"https://medium.com/drop-protocol/introducing-the-droplets-program-the-ultimate-guide-to-earning-drop-d80fd58c6a3e\"},{\"id\":\"JKEeBS9T5E\",\"description\":\"Medium: Introducing deINIT: The first LST built on a staked DEX position\\n\",\"timestamp\":1747441220033,\"url\":\"https://medium.com/drop-protocol/introducing-deinit-the-first-lst-built-on-a-staked-dex-position-e0ce90de9b39\"},{\"id\":\"gruZWNfFeu\",\"description\":\"Medium: Introducing dNTRN: The integrated LST\\n\",\"timestamp\":1747441342607,\"url\":\"https://medium.com/drop-protocol/introducing-dntrn-the-integrated-lst-24170dad0122\"},{\"id\":\"KDBcaGEm4H\",\"description\":\"Drop Docs: Lido Alliance\",\"timestamp\":1747441692476,\"url\":\"https://docs.drop.money/about/alliance\"}]"},{"id":"twitter_profile","value":"https://x.com/dropdotmoney"},{"id":"website","value":"https://www.drop.money/"},{"id":"discord_profile","value":"https://discord.com/invite/dropdotmoney"},{"id":"telegram_profile","value":"https://t.me/drop_protocol"},{"id":"github_profile","value":"https://github.com/hadronlabs-org/drop-contracts"},{"id":"medium_profile","value":"https://medium.com/drop-protocol"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmdpPFoXqgo4hFUfThQa5FXFSqMNXVDX4jMYfbPvkXGRAX\""},{"id":"commit-message","value":"\"Republishing the Drop wiki with updated content and images.\""},{"id":"previous_cid","value":"QmdpPFoXqgo4hFUfThQa5FXFSqMNXVDX4jMYfbPvkXGRAX"}],"events":[],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":[],"founders":[],"speakers":[]}}