Uniswap is reportedly looking at NFT funding and talking to several lending protocols
Uniswap is reportedly looking at NFT funding and talking to several lending protocols
Uniswap crypto exchange takes aim at NFT funding by introducing more NFT activities and ongoing talks with seven lending protocols
By Shashank Bhardwaj
Image: Shutterstock
The NFT product manager for Uniswap crypto exchange announces the company’s interest in expanding its NFT marketplace and service offering by taking it to Twitter. Gray Scott tweeted to inform users that the company is in talks with seven lending protocols to resolve the issues with the NFT services on the decentralized exchange. Uniswap users have faced problems of liquidity fragmentation and information asymmetry, which is the first step towards NFT funding for the exchange.
Uniswap users on Twitter were divided into two factions following the company’s clear plans. A faction of users praised the move and said that landing on the NFT protocols will be a big step towards improving the services offered through decentralized finance. Another segment of users is still dissatisfied with the liquidity fragmentation problems on the stock exchange. One of the users responded to Scott’s tweet saying, “any other motive for offering this feature than to make money off liquidations? or be kind enough to buy the lender’s worthless asset at Liq price and hold it while you try to dump yourself?” ” Such users are concerned about Uniswap’s motive for taking advantage of the liquidation proceeds.
Uniswap has been moving towards expanding its NFT services and NFT marketplace through its decentralized exchange. The acquisition of Genie, an NFT marketplace, was completed to allow Uniswap users to easily trade digital assets through various platforms. Uniswap has many users accounting for around $6 billion in liquidity pools. Therefore, the company had also announced the integration of NFT services on the decentralized exchange along with the support of Sudoswap. Sudoswap will be able to offer anonymous interactions and creation of NFT liquidity pools.
Like Uniswap, several decentralized exchanges are trying to integrate NFT services on the platform as people show interest in owning digital assets. This is not the first time Uniswap has tried to enter NFT’s marketplace and services. In 2019, they launched Unisocks, which allowed Uniswap’s first NFT liquidity pool returns, but failed to garner much attention. Currently, digital assets have gained popularity and the traction of DeFi is increasing day by day. Thus, Uniswap’s move to integrate seven lending protocols is a big step towards improving its own DeFi space. With the current pace of exchanges entering the NFT space, an NFT platform battle could be waiting to happen. Uniswap aims to get a head start in such a battle and provide NFT services to users at the earliest.
Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
