Uniswap reportedly looking at NFT financialisation and is talking to several lending protocols

Uniswap crypto exchange aims at NFT financialisation by introducing several NFT activities and current talks with seven lending protocols

By Shashank Bhardwaj

Image: Shutterstock

The NFT product head of Uniswap crypto exchange announces the company's interest in expanding its NFT marketplace and service offerings by taking it to Twitter. Gray Scott tweeted to inform the users that the company is in talks with seven lending protocols to solve the problems regarding the NFT services at the decentralised exchange. Uniswap users have been facing liquidity fragmentation and information asymmetry issues, which is the first step towards NFT financialisation for the exchange.

Uniswap users on Twitter were divided into two factions after the company's clear plans. One faction of the users praised the steps and said that landing on the NFT protocols will be a great step towards enhancing the services offered through decentralised finance. Another segment of the users is still unhappy with the liquidity fragmentation issues on the exchange. One of the users replied to Scott's tweet saying, "any other motive to provide this feature than profit from liquidations? or be kind to buy the lenders worthless asset at Liq. price and bag hold it while you try and dump on yourself?" Such users are concerned about Uniswap’s motive to take advantage of the liquidation profits.

Uniswap has been moving towards expanding its NFT services and the NFT marketplace through its decentralised exchange. The acquisition of Genie, an NFT marketplace, was completed to allow Uniswap users to trade digital assets easily through various platforms. Uniswap has many users that account for around $6 billion in liquidity pools. Hence, the company had also announced the integration of NFT services on the decentralised exchange along with the support of Sudoswap. Sudoswap will be able to provide anonymous interactions and the creation of NFT liquidity pools.

Like Uniswap, multiple decentralised exchanges are making a run for integrating NFT services on the platform as people are showing interest in owning digital assets. This is not the first time that Uniswap has tried to enter the NFT marketplace and services space. In 2019, they launched Unisocks, which allowed Uniswap’s first NFT liquidity pool renditions but could not gather much attention. Currently, digital assets have gained popularity, and the traction for DeFi is increasing day by day. Thus, Uniswap’s move to integrate seven lending protocols is a big step toward enhancing its own DeFi space. At the current pace of exchanges entering the NFT space, an NFT platform battle might be waiting to happen. Uniswap aims to get an edge in such a battle and provide NFT services to the users at the earliest.

Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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