Uniswap eyes NFT financialization, in talks with lending protocols


Crypto exchange Uniswap has engaged in talks with several non-fungible token lending (NFT) protocols, according to a social media post from Uniswap’s NFT Product Manager Scott Gray.

In the tweet, Gray highlights the company’s interest in addressing both liquidity issues and the “information asymmetry” surrounding NFTs.

While Uniswap’s focus for these talks and potential collaborations with lending protocols is NFT financialization, the crowd on Twitter came back with a two-sided response. Some users viewed the move as a step towards consolidating the future of decentralized finance, simply known as DeFi:

Other users questioned the motives behind Uniswap’s interest in NFT financialization and pointed to the possibility of taking advantage of liquidation profits.

Over the past few months, Uniswap has made great strides towards including NFT activity in its service offerings. Uniswap is one of the largest decentralized exchanges (DEXs) in the world, responsible for nearly $6 billion in assets in its liquidity pools.

In June, the company announced its acquisition of Genie, an NFT market aggregation platform, allowing users to find and trade digital assets on most platforms.

Shortly after, Gray tweeted that Uniswap planned to introduce NFTs with full Sudoswap support. Sudosawp allows anonymous interactions around NFT sales and the creation of NFT liquidity pools.

This is not the company’s first entry into the NFT space as in 2019 they launched Unisocks which was the first rendition of NFT liquidity pools. However, this latest push for NFT activity comes as these digital assets gain traction and utility inside and outside of the DeFi space.

Industries use these tokenized digital assets for everything from real estate deals and digital fashion to collectibles and monetizing music rights.

Similar platforms like OpenSea, MagicEden, and even eBay are rushing into the Wild West of NFTs. DappRadar’s Q2 industry report even suggested that an NFT platform battle could take place in the future.

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