Ever growing Web3 ecosystem, Uniswap, has set its sights on remedying the fractionalized NFT lending system. As such, it has entered into negotiations with 7 leading lending platforms in a bid to unify liquidity within the sector.
Of late, the NFT realm has seen a growing number of start-ups emerging that offer crypto based loans backed by NFT assets. Where the lending protocol will allow NFT owners to leverage the value of their collectibles, without giving up ownership.
Through its grand plan, Uniswap aims to unite the liquidity between the sector’s biggest players. Therefore, creating a much broader pool to engage with, and opening up NFT lending to a much wider audience. As of yet, Uniswap has not revealed the names of these potential partners. However, those with an eye on the Uniswap socials will likely see some announcements soon.
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
Despite this however, NFT lending does not come without its own inherent dangers. One high profile liquidity crisis recently saw the BendDAO reserves come close to running dry. Essentially, because the floor price of the Bored Ape Yacht Club dropped perilously close to the value of the loans taken out.