Recently, via his Twitter account, NFT’s head of product gave indications that the Uniswap exchange is in talks with various NFT Lendings Protocols to conduct an NFT funding round.
Scott Lewis (@Scott_eth), head of NFT products at Uniswap, made mention of the above in a series of tweets that brought a lot of repercussion. Scott stated in one of his posts the exchange’s intention to be able to address the serious liquidity issues, as well as the so-called information asymmetry that encompasses NFTs. He stressed that Uniswap is the right exchange for all NFT liquidity.
He also stated that the exchange is currently negotiating with 7 NFT Loan Protocols to work with each of them to find a solution to the liquidity problem affecting the NFT field. This would be one of the main steps to carry out the aforementioned financing round.
Although the main purpose of the exchange is to finance NFT, the Twitter community made broader statements than Scott’s. Many saw it as a step towards consolidating the future of decentralized finance (DeFi). Many saw it as a step towards consolidating the future of decentralized finance (DeFi).
On the other hand, there were also users who criticized Uniswap’s strategy, arguing that it is a move by the exchange to take advantage of the current liquidity problems, and the benefits that this entails.
Shortly thereafter, Scott continued to post tweets, among which he noted that Uniswap is planning to introduce NFT with SudoSwap support; the platform allowing anonymous interactions around NFT purchases and sales and the creation of liquidity pools.
Uniswap is one of the largest decentralized exchanges in the world, which facilitates transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts. It is provided on blockchain networks that are decentralized and run open source software, unlike other centralized exchanges, such as Binance, Kucoin, among others.
Uniswap uses liquidity pools, and does not act as market makers, something that also distinguishes it from centralized exchanges, in order to create more efficient markets.
In June of this year, the decentralized exchange bought Genie, a platform that aggregates NFT marketplaces, and allows users to trade cryptoassets on numerous platforms.
Uniswap brings with it a steady increase since its birth in November 2018, thanks to the fact that it offers automated solutions, avoiding frequent problems that destabilized the first decentralized exchanges. By automating the market making process (hence the acronym AMM – Automated Market Maker), the protocol boosts activity by limiting risk, and thus managing to reduce costs for all intervening parties. This mechanism also eliminates the identity requirement for users, so anyone can create a liquidity pool for any pair of tokens.
Then in September 2020 Uniswap launched its own token called UNI, in which they in turn authored airdrops of their token to former users of the protocol. One of its creators is Hayden Adams, who has also been an Ethereum developer.
Written by Luciano Garriga (TW:@luchogarriga) for NFT Express.