Autonomy Capital & Lithium Finance
Autonomy Capital is excited to announce our investment in Lithium Finance as well as our intention to support their long term vision of providing transparency in illiquid markets. Lithium opens up trillions of potential value that currently is not traded anywhere in any public market by offering incentives to price private activities which subsequently enables totally new liquid markets.
- Very good idea with a niche
- Huge potential
- First mover advantage
- Highly synergic with all Defi and all chains
Lithium Finance uses collective intelligence to price the unpriced.
Currently data oracles do not provide regular updated pricing for private companies. In fact, the only way to price an illiquid asset is through an expensive and slow valuation process. This limits the pricing to only very highly valued assets.
Lithium can do this quickly and inexpensively, enabling price discovery for illiquid assets, just like stocks.
Wisdom Nodes (experts) answer simple questions and provide a confidence stake. The more they stake the more they stand to win and the stronger they signal confidence in their answers.
Lithium Protocol can then mathematically determine the best answer prior to disclosure of a future ground truth and simultaneously discourages and slashes incongruent answers, by calculating a strong reward component that encourages honesty.
This is possible thanks to the advances that the modern peer-prediction theory has seen in recent years. Recently it was shown how peer-prediction can be structured to uncover honest truth and also reward it. In essence the latest theories provide the background for a robust algorithm to predict prices from individuals.
Examples of application are private companies rounds evaluations and pre ipo valuations.
WHAT ARE WE EXCITED ABOUT
Lithium Finance’s Pricing Oracle is basically a collective-intelligence version of platforms like PitchBook and Crunchbase, powered by cryptocurrency incentives which leverage the immutability of The Blockchain for reliable delivery of quality information. The participating oracles develop a reputation which enhances their earning potential and rewards increasingly accurate information which creates a positive loop for participants.
Currently, DeFi protocols are constrained by lack of pricing of real world illiquid assets. Creating a network of accurate and incentivized pricing experts for these off-chain assets could enable DeFi’s expansion from $77B+ to the real world assets of $100T, a 1300X increase. At the end of the day we aren’t able to tokenize assets we can’t price. But with prices everything changes.The most exciting thing though is the extreme level of potential synergy with all the existing and coming Defi applications. Once something is tokenized it can be used for all sorts of things as we have been seeing with Defi.
As the growth of digital securities and convergence between traditional finance markets and DeFi grows, the demand for pricing information for opaque assets will grow. More and more traditional financial companies are looking to digital assets and Lithium Finance will operate across all sectors, providing higher quality information to all traders, brokers, and investment bankers.
Cherry on top: the only tool Wisdom Nodes need is a smartphone and a desire to earn money for their expertise.
Wherever there is a market, there is a need for Lithium Finance.
Lithium is positioned to capitalize on a unique point of convergence between blockchain, traditional finance, and DeFi, enabling tremendous growth and innovation at the interface.
Crowdsourcing has been a powerful tool for creating datasets that already exist but are distributed throughout the web. Lithium Finance takes this into DeFi by gathering collective intelligence from people who previously wouldn’t give their expertise to the benefit of the whole market, but now have an incentive to do so.
About Autonomy Capital
Autonomy Capital is a self-funded VC that aims to not only provide early round financial support to projects but also to actively provide guidance through networking, marketing strategy, community management, and exchange listings.