Uniswap in talks with 7 lending protocols to ‘build NFT financialization’
Uniswap said it will work with each lending protocol to "solve liquidity fragmentation and information asymmetry."
Decentralized exchange Uniswap is in talks with seven NFT lending protocols, according to a tweet from its head of NFT product Scott Lewis.
uniswap is the interface for all nft liquidity.
we are now in talks with 7 nft 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
According to Lewis, Uniswap would work with each lending protocol to “solve for liquidity fragmentation and information asymmetry.” He added, “this is the first step to building NFT financialization.”
Lewis did not reveal which lending protocols are in discussions with Uniswap.
Community receptive to the idea
The NFT community has welcomed news of Uniswap’s growing interest in the scene.
There is indeed a very serious information asymmetry, and users need a more concise interaction method to participate in the liquidation and auction of NFT assets.
— Shier 🦇🔊 (@shier_eth) August 23, 2022
According to Shier, the community “needs a more concise interaction method to participate in the liquidation and auction of NFT assets.”
Let's chat, Scott! 🤝🔓
— Unlockd (@Unlockd_Finance) August 23, 2022
Several NFT platforms like Unlockd_Finance, Liquid NFTs, Fuku, and others also expressed interest in participating in the talks with Uniswap.
Uniswap and NFTs
Uniswap has shown interest in the NFT scene with some acquisitions and integration.
The DEX recently announced the integration of Sudoswap, a decentralized NFT marketplace, to its platform to allow for efficient NFT swaps.
— Scott 🦄 (@Scott_eth) July 22, 2022
Sudoswap already incorporates some of the features of decentralized exchanges, such as swapping and automated market maker for NFTs.
Uniswap also acquired Genie, an NFT marketplace aggregator. According to its announcement, its Genie purchase is geared towards “making Uniswap a comprehensive platform for users and builders in web3.”
DappRadar wrote that Uniswap’s move into NFTs “could usher in a new kind of NFT that does not only rely on rarity factors and exclusivity but actual financial utility.”
NFT lending under the spotlight
NFTs lending services have been under the spotlight in recent weeks as fears of liquidation surround blue-chip NFTs on BendDAO.
According to available information, around $55 million could be wiped off the market.
📢BIP#9 has passed the quorum with 97% approval.
Thanks for the community support!
🆕BIP#10 is proposed to adjust the implementation plan of Liquidation Threshold & Auction Duration considering the suggestions collected from the BendDAO forum.https://t.co/Op5x8kt7uJ
— BendDAO.eth (@BendDAO) August 23, 2022
Meanwhile, BendDAO has passed an emergency proposal to see its collateral liquidation threshold drop to 70% from 85%. The proposal also shortens the auction period from 48 hours to 4 hours.