Uniswap is in talks to partner with 7 non-fungible token (NFT) collateralized lending protocols. Scott Lewis, head of NFT products at UNISWAP Labs, tweeted his intention to work with all major lending protocols to quickly address the problems of liquidity fragmentation and information asymmetry.
Uniswap NFT marketplace: WHAT IS KNOW?
Over the past months, Uniswap has taken steps to implement NFT into its services. In June, the company behind the exchange acquired the Genie marketplace founded by Lewis.
Unisocks: WHAT DYNAMICS NFT?
Previously, Uniswap issued Unisocks tokens in the form of NFTs as a joke. At the peaks of the NFT trend, the price reached $92,500, at the beginning of 2021.
In May 2021, an unknown person traded Unisocks worth $875,000 for nine pairs of real socks. As you can see in the chart below, the price of tokens has dropped significantly. And it is fully consistent with the general trend observed in all collections.
At the moment, the minimum price for UNISOCKS is about $30,000.
Conclusion: About NFT Lending
Lending secured by NFT tokens is a very powerful tool for the development of the industry. At the moment, there are a number of problems with assessing the collateral value of an object and with the methodological approach to determining the value of both a specific NFT token and its type. There is also the problem of fragmentation of digital art, which directly affects the creation of liquidity at the time of the sale of unclaimed collateral. The main danger is that lending protocols using NFT as collateral could drive up the value and lead to another financial bubble. The main thing in this matter is to find a balance between really noteworthy collectibles with a clear pricing structure or an unpopular collection with artificial liquidity.
