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Lithium Finance: Our Unique Proposition

Lithium Finance (

Data is a critical component of technology that once embedded into an application, essentially gives it new life.

To an extent, DeFi relies on transparent data. As long as data oracles provide relevant, timely information to market participants, their use-cases will continue to expand across the DeFi ecosystem.

What exactly are data oracles?

We consider data oracles as communication tools that ensure knowledge exchange between the outside world and blockchain. In simpler terms, data oracles provide metrics like asset prices, weather, dates, election results, and lots more to smart contracts that are otherwise unable to access external real-world information.

The Ethereum Foundation describes oracles as:

“a bridge between the blockchain and the real world”.

For this bridge to continuously expand and create additional use-cases across the DeFi and NFT space, a wide range of assets need to be priced efficiently. Given their wide application to DeFi, most oracles provide pricing information for liquid assets like currencies, commodities, and indices, to name a few, while ignoring illiquid assets that are also important to the blockchain ecosystem. Almost all data oracles (except for Lithium Finance) rely on 3rd party data providers that are subject to the same issues facing the traditional finance ecosystem (price collusion, centralization, etc.).

The Lithium Finance Proposition

Lithium Finance is creating an innovative data solution that will unlock trillions of dollars in hidden value across the DeFi & NFT ecosystem by pricing illiquid and hard to value assets.

David Lighton, Co-founder of Lithium Finance

Unlike most blockchain oracles that source data from 3rd party providers, the Lithium Oracle will be the only on-chain protocol that generates first-party pricing for illiquid assets across a broad spectrum that includes digital games, crypto tokens, and more. Lithium’s use-case spans protocols in the DeFi, NFT, and traditional investing space (e.g., Hedge funds/Private Equity).

As more individuals and protocols transact, the need for more data intelligence increases, and Lithium will be the source of all pricing information across the illiquid and non-traditional asset space.

How will Lithium’s oracle source pricing?

Lithium’s data oracle utilizes sophisticated technology to crowdsource information from a large pool of subject matter experts (called Wisdom Nodes). Our proprietary mechanism leverages crowd wisdom to source ground truths on a wide range of illiquid assets. The Lithium protocol will use an incentive mix of our native $LITH token, together with reputation scores to deliver rewards to Wisdom Nodes with answers deemed to be close to the ground truth.

In closing: Lithium is a first-party data provider that uses proprietary methodologies to value private and illiquid assets. Compared to other data oracles, we do not rely on 3rd party service providers for our data, and we have a focus on providing pricing for illiquid and hard-to-value assets.

Expect more announcements from us in the coming weeks!

About Lithium Finance

Lithium Finance is the first collective-intelligence pricing oracle that provides precise and timely pricing information on private and illiquid assets. Our protocol leverages crowd wisdom and the DMI-mechanism to provide pricing on hard-to-value assets such as pre-IPO stocks, private equity, and other illiquid assets.

Official Links:

Website / Telegram / Twitter / Litepaper



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