Decentralized crypto exchange Uniswap has been in the news a lot this month. Its Head of NFT Product, Scott Lewis, revealed that they are in talks with seven NFT lending protocols to build NFT financialization.
Basically, someone with the underlying NFTs can not only profit from the increasing value of these NFTs, but they can also provide liquidity on a decentralized exchange like Uniswap.
The next step will be to “financialize” NFT assets using the DeFi protocols mentioned by Lewis. Uniswap is working to tackle two major issues in the space: liquidity fragmentation and information asymmetry.
Allowing NFT holders to deposit their NFTs into the liquidity pool and take out permissionless loans is part of the NFT financialization landscape, and lenders will be able to earn liquidity provider fees by providing liquidity.
Lewis founded Genie, an NFT marketplace aggregator that was acquired by Uniswap Labs in June.
Uniswap has taken significant steps toward incorporating NFT activity into its service offerings, such as announcing the integration of Sudoswap, an NFT marketplace that allows the creation of NFT liquidity pools.
Also Read: Sudoswap AMM NFT Marketplace Sparks Creator Royalties Debate
