Uniswap, the largest decentralized exchange (DEX) in terms of trading volume, is apparently gearing up to become a more prominent player in the non-fungible token sector. According to the company’s head of NFT products Scott Lewis, Uniswap is “in talks” with 7 NFT lending protocols to solve for liquidity fragmentation in the space.
Key takeaways:
- Lewis’ announcement comes roughly a month after Uniswap announced the integration of Sudoswap, an NFT marketplace that allows investors to buy, sell and trade digital collectibles with no intermediary.
- In a tweet published on Tuesday, Uniswap’s NFT product lead wrote that the company would be working with each of the 7 lending protocols to “solve for liquidity fragmentation and information asymmetry.”
- A number of NFT trading lending protocols replied to the tweet – Banksea Finance, for instance, wrote they are “happy” about Uniswap taking on the role of an interface for NFT liquidity.
- Unsiwap’s first foray into the NFT space dates back to 2019, when the company launched Unisocks, the first iteration of NFT liquidity pools. Uniswap’s increased focus on NFTs comes at a time when more and more decentralized finance (DeFi) products and services utilize NFTs for various purposes.
- After an explosive 2021, digital collectibles trading volume plunged this year, especially in the second quarter. According to The Block Research, investors traded $12.22 billion wroth of NFTs in Q2 2022, down from $33.88 billion in Q1 2022.
