Uniswap is a Decentralized Exchange (DEX) and one of the highest growing Web3 platforms. The DEX is looking to incorporate the fractionalized NFT lending system into its ecosystem.
Uniswap has started negotiating with seven leading platforms and has taken part in a bid to unify liquidity in their platform. However, Uniswap hasn’t revealed the names of any of the partners.
Lately, we see more and more start-ups in the NFT space that provide cryptocurrency-based loans backed by NFT assets. As the NFT liquidity eventually completes, we will see Uniswap allow NFT owners to leverage their digital assets – they can rent them without giving up their ownership.
Additionally, Uniswap is looking forward to providing as well as uniting liquidity among the platform’s big fish. In order to make this idea a reality, Uniswap will create a much larger pool and allow a much wider audience to use the upcoming NFT lending system.
Twitter user @Scott_etc, head of NFT product at Uniswap and founder of @genuexyz, posted the following:
Uniswap isn’t new to the concept of NFTs as the exchange acquired Genie, an NFT aggregator, in June. Using Genie, you can search for different NFTs and trade them across multiple platforms.
As much as interesting as NFT lending liquidity sounds, this mechanism comes with its own set of dangers and risks. Recently, we saw the BendDAO reserves almost running dry due to a high profile liquidy crisis. Furthermore, Bored Ape Yacht Club floor price also went down drastically amid the crypto winter this May.
Despite all the risks and dangers, Uniswap can be in the race to become a big player in the NFT space if they pull this off.
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