Uniswap Is In Talks With Lending Protocols, Eyes NFT financialization

Uniswap is in talks with lending protocols, according to a social media post by the company’s head of NFT product Scott Lewis, meaning that the firm currently eyes NFT financialization.

Lewis emphasizes the company’s interest in addressing both liquidity difficulties and “information asymmetry” around NFTs in the tweet.

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

While Uniswap’s aim for these discussions and prospective cooperation with lending protocols is NFT financialization, the community on Twitter had a mixed reaction. Some people saw the move as a step toward securing the future of decentralized finance, abbreviated as DeFi:

“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.” said Twitter user @Scott_eth.

To the previous statement Twitter user @structure_fi said that Uniswap keeps proving that DeFi is here to stay.

Other commenters questioned Uniswap’s involvement in NFT financialization, pointing to the possibility of profiting from 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

Uniswap has taken significant steps in recent months to include NFT activities into its service offerings. Uniswap is one of the world’s largest decentralized exchanges (DEX), with almost $6 billion in liquidity pools.

Genie, an NFT marketplace aggregation platform that allows users to search and trade digital assets across most platforms, was acquired by the business in June.

Lewis then tweeted that Uniswap intends to launch NFTs with complete Sudoswap functionality. Sudosawp enables anonymous interactions with regard to NFT sales and the establishment 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

This is not the company’s first foray into the NFT arena, as they introduced Unisocks, the first iteration of NFT liquidity pools, in 2019. This new push for NFT activity, however, comes as these digital assets acquire traction and utility both inside and outside of the DeFi area.

These tokenized digital assets are being used by industries ranging from real estate contracts and digital fashion to collectibles and music rights monetization.

Uniswap is in talks with lending protocols and we will just have to wait and see what happens next.

Similar sites, such as OpenSea, MagicEden, and even eBay, are charging headlong into the wild west of NFTs. According to DappRadar’s Q2 market analysis, an NFT platform conflict might be on the horizon.

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