Categories

Uniswap Is Negotiating With Loan Protocols To Facilitate NFT Financialization

Uniswap Is Negotiating With Loan Protocols To Facilitate NFT Financialization.

According to a social media post by Scott Lewis, a notable crypto “NFT Financialization” exchange called Uniswap is in talks with a number of NFT lending venues (the head of NFT product at Uniswap). The Uniswap executive’s tweet reveals the company’s commitment to solving liquidity issues and information asymmetry in the NFT market.

Uniswap Conceives of NFT Financing and Has Discussions About It with a Few Loaning Protocols

He also mentioned that seven lending protocols are in communication with the platform. According to him, the company will prioritize working with each of them to address the problems of information asymmetry and liquidity fragmentation. If this succeeds, it will be the first step toward implementing NFT financialization.

Twitter users reacted in different ways to the news that Uniswap was the driving force behind the talks, as well as the likely partnerships with major lending venues, which many see as a step toward NFT financialization. A minority of consumers, however, saw this as a potentially positive development that could help secure the future of decentralized finance. While some customers supported Uniswap’s push toward NFT financialization, the vast majority pushed back.

As a matter of fact, they specified that the company was meant to gain from the sale of assets. Large strides have been made in recent months by Uniswap to include NFT operations in the service offerings of the company. Liquidity pools managed by the platform are home to approximately $6 billion in assets, making it one of the largest decentralized exchange forums in the world.

Uniswap Buys Genie to Improve Service for Customers

In June, the platform announced that it had acquired Genie, a platform that aggregates the NFT market, making it easier for users to search for and buy and sell cryptocurrencies on a wide variety of exchanges. Shortly after, Lewis tweeted that the company intends to provide NFTs with full support for the Sudoswap algorithm.

Customers can buy and sell NFTs in a completely anonymous manner on Sudoswap, and they can even pool their NFTs together to increase their value. However, this should not be viewed as the company’s first step into the NFTs industry. They forayed into the non-fungible token related liquidity pools in 2019 with the introduction of Unisocks.

Even though digital assets and their associated use cases within and outside of the DeFi world are gaining traction, there is a disproportionate amount of focus on NFT operations.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.