According to a social media post by Scott Lewis, one of the most prominent cryptocurrency exchanges, Uniswap, is in talks with a number of NFT lending venues (the head of NFT product at Uniswap). The Uniswap executive tweets about the company’s desire to address liquidity issues and the information asymmetry in the NFT market.
Uniswap Thinks About Financializing NFTs and Has Had Discussions About It With a Few Lending Protocols
The platform is in discussion with up to seven lending protocols, he added. He claims that in order to address the problems of information asymmetry and liquidity fragmentation, the company will work closely with all of them. This constitutes the first step toward establishing NFT financialization.
There was a range of opinions on Twitter about whether or not the NFT financialization that is the stated goal of the talks with Uniswap and the likely partnerships with major lending venues should be counted. A few of the consumers believed that the move was positive and would strengthen the future of decentralized finance. However, the majority of customers opposed it and objected to Uniswap’s motivations behind its move toward NFT financialization.
In fact, they specifically stated that the company was meant to gain from the sale of assets. In recent months, Uniswap has made significant progress toward incorporating NFT operations into its service offerings. Platform liquidity pools total around $6 billion, making it one of the largest decentralized exchange forums in the world.
Uniswap Acquires Genie to Improve User Experience
In June, the exchange 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. Lewis then tweeted that the company intends to offer NFTs with full support for Sudoswap.
Customers can buy and sell NFTs in a completely anonymous fashion using Sudoswap, and they can even pool their NFTs together to increase their value. However, this does not constitute the company’s initial entry into the non-profit sector. They launched Unisocks in 2019 as their first foray into non-fungible token-related liquidity pools.
While digital assets and their associated use cases within and beyond the DeFi world are gaining traction, the current focus on NFT operations seems to be a distraction.