The ever-growing Web 3 ecosystem, Uniswap, has set its sights on fixing the fragmented NFT lending system. Therefore, it has negotiated with 7 leading credit platforms to consolidate liquidity in the sector.
Of late, the NFT realm has seen a growing number of startups offering crypto-based loans backed by NFT assets. While the lending protocol allows NFT holders to use the value of their collectors without relinquishing ownership.
Uniswap’s ambitious plan aims to unify liquidity among the industry’s biggest players. Thus, creating a much wider pool to participate in and opening up NFT lending to a wider audience. So far, Uniswap has not disclosed the names of these partners. However, those with an eye on Uniswap Socials may see some announcements soon.
uniswap is the interface for all nft liquidity.
Now we are dealing with 7 nft lending protocols. We work with each other to solve fluid fragmentation and information asymmetries. This is the first step to building nft financials.
– Scott ? (@Scott_eth) August 23, 2022
Despite this, NFT lending does not come without its own inherent risks. A high-profile liquidity crisis recently saw BendDAO’s stock nearly dry up. Basically, because the floor price of the Board Up Yacht Club fell dangerously close to the value of the loan taken out.
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*All investment/funding opinions expressed on NFT Plazas are derived from the personal research and experience of our site moderators and are intended as educational material only. Individuals should thoroughly research any product before making any investment.
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