Cryptocurrency exchange Uniswap has entered into discussions with several non-fungible token (NFT) lending protocols, according to a social media post by Uniswap’s head of NFT products Scott Lewis.
In the tweet, Lewis highlights the company’s interest in addressing both liquidity issues and the “information asymmetry” surrounding NFTs.
uniswap is the interface for all nft liquidity.
we are now in talks with 7nft lending protocols. we will be working with each one to solve for liquidity fragmentation and information asymmetry. this is the first step to building nft financialization.
— Scott (@Scott_eth) August 23, 2022
uniswap is the interface for all nft liquidity.
we are now in talks with 7 nft lending protocols. we will work with each of them to resolve liquidity fragmentation and information asymmetry. This is the first step in building the financialization of NFT.
Although Uniswap’s goal in these talks and possible collaborations with lending protocols is the financialization of NFTs, the crowd on Twitter responded with a double face.. Some users saw the decision as a step towards cementing the future of decentralized finance, known simply as DeFi:
@uniswap keep providing that #defi is here to stay.
— structure_fi (@structure_fi) August 23, 2022
Other users questioned the reasons for Uniswap’s interest in the financialization of NFTs and pointed to taking advantage of the benefits of liquidation.
any other motive to provide this feature than profit from liquidations? or be kind to buy the lenders worthless asset at liq price and baghold it while you try and dump on yourself?
— PilotGFX (@PilotGFX) August 23, 2022
any other reason to offer this feature other than the benefit of payouts? Or kindly buy the worthless asset from the lenders at fire-sale price and pocket it while you try to sell it yourself?
In recent months, Uniswap has made great strides to include NFT activity in its service offering. Uniswap is one of the largest decentralized exchanges (DEX) in the world, responsible for almost $6 billion in assets in its liquidity pools.
In June, the company unveiled its acquisition of Genie, an NFT market aggregation platform, which allows users to find and trade digital assets on most platforms.
Shortly after, Lewis tweeted that Uniswap plans to introduce NFT with full Sudoswap support. Sudosawp enables anonymous interactions around NFT sales and the creation of NFT liquidity pools.
We’ll be launching NFTs on Uniswap with full @sudoswap support. Pool data flowing in pic.twitter.com/nsRt9Cp1Ss
— Scott (@Scott_eth) July 22, 2022
We are launching NFT on Uniswap with full support from @sudoswap. Pool data flows
This is not the company’s first foray into the NFT space, as in 2019 they launched Unisocks, which was the first interpretation of NFT liquidity pools. However, this latest boost to NFT activity comes as these digital assets gain more traction and utility in and out of the DeFi space.
Industries are using these tokenized digital assets for everything from real estate contracts and digital fashion to collectibles and music rights monetization.
Similar platforms like OpenSea, MagicEden, and even eBay are rushing into the wild west of NFTs. DappRadar’s Q2 industry report even suggested that an NFT platform battle could be in the future.
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