LithiumFinance
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LithiumFinance

Lithium Finance Partners With Danu to Develop Improved NFT Pricing Mechanism

  • Danu is exploring supplementing their pricing model with Lithium to improve the accuracy in newly minted collection - to kick start the partnership, the team will work closely to publish a joint research on how to best combine human-based and quant appraisal.
  • Tapping into Lithium’s network of NFT Price Experts, Price Seekers like Danu will be able to improve their machine learning calculations by incorporating human insight via collective intelligence.
  • Floor price and transaction history have dictated the price of NFT collections, however many other factors play a part in the valuation and sale of this illiquid asset. This partnership aims to provide an application for accurate NFT pricing.

Lithium Finance is proud to announce the partnership with Danu, builders in the space who have developed an automated market maker (AMM) for NFTs on the Ethereum blockchain. Under the partnership, Lithium will serve as a strategic partner utilizing the collective intelligence approach to eliminate key challenges in valuing NFTs in today’s market to aid Danu on its quest to improve liquidity in the NFT ecosystem.

Dedicated to improving pricing for private and illiquid assets, Price Seekers like Danu can leverage Lithium’s Price Experts by submitting valuation queries of specific NFTs. Subsequently, Price Experts will collectively determine the ultimate consensus.

Pricing NFTs presents many difficulties as floor price is not an accurate indication of inherent value and for many NFTs, transaction history and volume may not be deep enough to provide a precise picture of its market value. For example, 39 % of profile picture (PFP)-based collections are never sold and 92 % are sold three times or less (Danu, 2022). However, with the help of the collective intelligence, the Lithium and Danu partnership could be a turning point for greater NFT price discovery, and for the very first time, investors will be able to obtain a decentralized third-party valuation that is transparent.

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.

Website | Telegram | Twitter | Discord | Medium | LinkedIn | Whitepaper

About Danu Finance

Danu is building a series of products to improve the liquidity of NFTs. Our main product is an automated market maker (AMM) for NFTs. Our AMM will allow automated trading of NFTs at fair-market prices, as well as instant selling at liquidation prices.

Website | Telegram | Twitter | Discord

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