Decentralized exchange Uniswap is in talks with seven NFT lending protocols, according to a tweet by Scott Lewis, head of NFT products.
uniswap is the interface for all nft liquidity.
We are currently in talks with 7 nft lending protocols. We will work with each to resolve liquidity fragmentation and information asymmetries. This is the first step in building the financialization of NFTs.
— Scott 🦄 (@Scott_eth) August 23, 2022
According to Lewis, Uniswap works with each lending protocol to “resolve liquidity fragmentation and information asymmetry.” He added, “This is the first step in building the financialization of NFTs.”
Lewis did not disclose the financing protocol in talks with Uniswap.
A community that accepts ideas
The NFT community welcomes the news of growing interest in the Uniswap scene.
There is indeed a very serious information asymmetry, and users need a simpler way of interacting 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 way of interacting to participate in the liquidation and auction of NFT assets.”
Let’s chat, Scott! 🤝🔓
— Unlockd (@Unlockd_Finance) August 23, 2022
Several NFT platforms such as Unlockd_Finance, Liquid NFTs and Fuku have also expressed interest in joining discussions with Uniswap.
Uniswap and NFT
Uniswap has shown interest in the NFT scene with several acquisitions and integrations.
DEX recently announced the integration of Sudoswap, a decentralized NFT marketplace, into its platform to enable efficient NFT swaps.
— Scott 🦄 (@Scott_eth) July 22, 2022
Sudoswap already has some of the functionality of a decentralized exchange built in, such as swapping and an automated market maker for NFTs.
Uniswap too got Genie, NFT Marketplace Aggregator. According to the announcement, his purchase of Genie is aimed at “making Uniswap a comprehensive platform for web3 users and builders.”
Dapp Radar I have written Uniswap’s move to NFTs “could usher in a new kind of NFT that relies not only on scarcity and exclusivity, but on actual monetary utility,” he said.
NFT lending in the spotlight
NFT lending services have been in the spotlight for the past few weeks due to liquidation fears surrounding quality NFTs on BendDAO.
About $55 million could be wiped from the market, according to available information.
📢BIP#9 passes quorum with 97% approval.
Thank you for your community support!
🆕 Considering suggestions collected from the BendDAO forum, BIP#10 is proposed to adjust the implementation plan for liquidation thresholds and auction periods.https://t.co/Op5x8kt7uJ
— BendDAO.eth (@BendDAO) August 23, 2022
Meanwhile, BendDAO has passed an urgent proposal to reduce the threshold for collateral liquidation from 85% to 70%. Under this proposal, the auction period will also be shortened from he 48 hours to 4 hours.