Uniswap V3, the protocol with $4.02B in TVL yet to be used as collateral, until now…
One of the most anticipated DeFi upgrades was released mid-2021 with a private codebase — a highly unusual practice in the decentralized landscape. Obviously, we’re talking about Uniswap v3 looking to get a leg up on SushiSwap in their ongoing saga.
This upgrade was the introduction of NFTs & customizable liquidity ranges — an industry first that still to this day has not been matched.
With this, Uniswap has amassed $4.02 billion in TVL (total value locked) at the time of writing this, BUT nobody has created a way to leverage any of it until now…
We’re Themis — the ultimate money lego to Uniswap V3 and future protocols to adopt their NFT technology — potentially unlocking billions in value for its liquidity providers. Let’s talk about how:
NFTs on Uniswap v3
When most people hear the term “NFT” they think of visual media, but non-fungible tokens can have functionalities that go far beyond the ownership of digital art.
In the case of Uniswap v3, NFTs express the ownership of a user’s liquidity providing position(s).
Previously, in Uniswap v2 (and ~99% of protocols in existence), the ownership of liquidity positions were expressed via “LP Tokens” — a token you’d receive in return for providing liquidity.
Custom Liquidity Ranges
Traditionally, when you provide liquidity to a pool your capital is distributed from $0 to ∞. Uniswap v3 changes that by allowing you to select a price range.
This introduces a host of new game theory & investment strategies to the expert user, but the overall benefit is far more efficient liquidity. v3 requires ~1/10th the capital of v2 to achieve the same depth of liquidity.
Again, this feature further benefits from NFTs expressing your unique ownership of a custom price range.
Enter, Themis.
With Themis, you’ll be able to receive a loan using your NFTs from Uniswap v3 as collateral — something no other protocol currently offers.
This way your liquidity will remain in the pool generating yield while unlocking additional value to use however you wish — again, the ultimate money lego! 😏
In addition to collateralizing your NFTs, Themis allows you to lend, farm, and even bid on liquidated positions in a Dutch Auction.
You can read more about the inspiration for our project here.
Themis’ collateralized NFTs will offer much more utility than simply Uniswap v3 in the near future, but stay tuned as we’ll dig into that soon! 🔜
Follow Themis on our socials to stay updated:
