Uniswap Exchange announces loans secured by NFTs

A representative of the decentralized platform noted that the company is already in talks with lending protocols

24.08.2022 - 15:40

264

2 min

What’s new? Decentralized exchange (DEX) Uniswap has announced loans secured by non-fungible tokens (NFTs). According to a Twitter post by Uniswap's head of NFT products Scott Lewis, the company is now in talks with several lending protocols. He emphasized the exchange's interest in addressing liquidity issues and the lack of an aggregator of data on the price changes of non-fungible tokens.

uniswap is the interface for all nft liquidity. we are now in talks with 7 nft lending protocols. we will be working with each one to solve for liquidity fragmentation and information asymmetry. this is the first step to building nft financialization.— Scott 🦄 (@Scott_eth) August 23, 2022

How did the community react? Twitter users have had mixed reactions to the news. Some saw the decision as a step to strengthen the field of decentralized finance (DeFi). And some questioned Uniswap's motives for integrating NFTs into the DeFi sector, pointing to the possibility of profits if positions were liquidated.

Lewis also noted that Uniswap plans to introduce NFTs with full support for Sudoswap, a decentralized NFT marketplace that allows for anonymous token interactions and the creation of NFT liquidity pools.

What is known about Uniswap? It is a decentralized smart contract-based financial protocol for cryptocurrency trading developed in 2018. The platform supports 445 digital assets and 816 currency pairs. According to CoinGecko as of August 24 at 14:45 UTC, the daily trading volume is $1,13 billion. The exchange's native UNI token is trading at $7,06, down 1,4% overnight, according to Binance.

Trading volume on Uniswap dropped to a new low of 2022 in July. It was about $37,8 billion in the first month of the third quarter, according to Dune Analytics. Compared to June's $46,4 billion, the amount for July was down 18%. And compared with the same period last year, the decline was 4%, when the trading volume was $39,8 billion.

Author: