Uniswap, a leading decentralized finance (DeFi) platform, is currently in talks with several non-fungible token (NFT) lending platforms. A tweet from the head of NFT Product at the company, Scott Lewis, said that the exchange was in talks with several NFT lending protocols to launch NFT financialization.
Uniswap plans to launch NFT financialization
The tweet by Lewis said that the company was interested in handling the liquidity issues and the “information asymmetry” surrounding NFTs. The announcement by Uniswap regarding these talks and the plans for NFT financialization has elicited mixed responses from crypto Twitter.
Some users applauded the decision, saying it was a step towards embracing DeFi as the future of finance. However, others questioned the motives saying that the exchange’s interest in NFT financialization would allow it to take advantage of liquidation profits.
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Over the past few months, the Uniswap exchange has made several strategic steps to add NFT activity into its service offerings. Uniswap is already cementing a solid position in the DeFi space. It ranks as one of the largest decentralized exchanges (DEXs), in charge of around $6 billion in assets locked within its liquidity pools.
Uniswap’s efforts to venture toward the NFT space
Uniswap has made several moves to venture into the NFT sector. It is not the first time the company has shown interest in NFTs. In 2019, the company launched Unisocks, marking the first time NFT liquidity pools came into the market.
However, the latest effort by the DEX to pursue NFT development comes when these assets are gaining more popularity and utility by the day in the DeFi sector. Industries using these tokenized assets range from real estate and digital fashion brands to music rights.
Fashion brands have especially shown interest in NFTs to attract digital-savvy customers. The leading fashion company Nike has made NFT sales equivalent to $185 million.
Some platforms operating in the NFT sector, such as OpenSea, MagicEden, and eBay, actively pursue NFTs. A financial report shared by DappRadar for the second quarter of 2022 has also suggested that there could be increased competition over NFT offerings in the future. This could spell good news for brands that are only now venturing into the sector as there could be a large market for the same.
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