Lithium Finance Partners With Cyan to Bring Liquidity Options to NFTs
- The partnership aims to optimize NFT pricing intelligence, allowing borrowers to access a third party, independent valuation, with the ability to access real LTV & valuation for non- floor items.
- By providing extra liquidity according to real LTV/ Valuation, the partnership will further boost NFT financialization.
- Each party can therefore more appropriately manage risk when using NFTs as collateral and allow further capital to be redistributed back to the market.
Lithium Finance is proud to announce the partnership with Cyan, the buy-now-pay-later platform for bluechip NFTs. Under the partnership, Lithium will serve as a key partner in the pursuit of optimizing the process of appraising NFTs.
As the space is still in its infancy, finding a reliable NFT appraisal value is difficult due to illiquidity, volatility, the myopic nature of developing markets, and ultimately, the difficulty quantifying each participant’s perceived value. There are several approaches to the problem, but few have skin in the game and consequences for bad valuation.
The Lithium — Cyan partnership is the first step to fill this gap, offering Cyan users a highly effective appraisal platform powered by Lithium’s collective intelligence model. In addition, NFT holders can use Cyan to pawn their holdings at a valuation closer to the market price rather than just floor price. The two believe the move will further align the interest of the borrowers and the lenders.
About Lithium Finance
Lithium Finance is the first decentralized asset pricing mechanism powered by collective intelligence. We bring market participants together to estimate pricing for illiquid assets on demand.
Cyan, the Buy Now, Pay Later service for the metaverse, is the first protocol to provide financing options for purchasing NFTs. The protocol also provides collateralized loans on NFTs and Vaults for capital providers to earn a yield on financing these assets.