Uniswap's NFTs Strategy

Breaking down the billion dollar crypto exchanges approach to enter NFTs...

Author

Matt O'Brien
November 30, 2022

GM frens,

Today, Uniswap shared their strategy to enter NFTs.

In today's edition of the Ground Floor we will be breaking down the opportunity, Uniswap's proposed approach, and the competition they will face from their biggest rival Blur.

Uniswap's NFT Strategy

Breaking down the billion dollar crypto exchanges approach to enter NFTs...

NFTs are here to stay.

Despite a sharp reduction in the overall spending on NFTs compared to the all time highs we experienced late last year — more and more brands continue to adopt NFTs.

From Reddit to Starbucks & Nike, we are seeing more & more billion dollar brands adopting NFTs to create better digital experiences for their consumers.

With this ever increasing interest from brands adopting NFTs, the need for solutions that make it easier for consumers to interact with NFTs has never been higher.

⬇️ Low Liquidity

One of the primary benefits of NFTs is the ability to re-sell these digital assets in an open market without requiring the permission from the protocol to do so.

That said, for the sellers seeking to sell an NFT in 2022 it can soon turn into a waiting game due to the unknown amount of time it takes to sell an NFT due to the lack of liquidity.

To help buyers & sellers, Uniswap, the billion dollar decentralized ethereum crypto exchange is launching an NFT aggregator to provide consumers with NFT listings across each of the major marketplaces & aiming to provide sellers the best liquidity.

Anything New?

Uniswap is not without competitors in this area with both Blur, and Gem having built impressive products that also focus on NFT market aggregation.

The following is Uniswap's strategy to win:

More listings, at better prices: Aggregators deliver better prices by combining multiple marketplace listings into one interface. At launch, Uniswap will support OpenSea, X2Y2, LooksRare, Sudoswap, Larva Labs, X2Y2, Foundation, NFT20, and NFTX.

More gas savings: Save up to 15% on gas costs compared to other NFT aggregators when purchasing across marketplaces. Powered by our new open-sourced Universal Router contract, Uniswap’s aggregator can save tens of thousands of gas units over other marketplaces.

Trustless and open source: Uniswap is committed to being trustless, transparent, and open source. We’ve brought those same design principles to NFTs and open-sourced all of our front-end code, making us the first major NFT platform to do so.

♟️ The Opening Move(s)

As big brands continue to build digital products issued as NFTs, the size of the opportunity projects such as Uniswap, Blur and Gem are working towards continues to increase in size.

Accessing the opening moves, Blur is currently +1 vs its competitors with its brilliant token distribution design that has encouraged a growing group of consumers to list their NFTs on Blur in addition to charging 0% creator fees or marketplace fees to entice buyers.

Whereas Blur's opening move is an interactive experience that encourages its users to help build the network needed to succeed, Uniswap has provided its users with an airdrop between $300 - $1,000 based on past usage & the ability to get gas refunded.

📡 Looking Forward

Without mechanics / tokenomics that encourage sellers to list NFTs on Uniswap I would wager they won't convert the NFT collectors that have recently chosen Blur as their NFT aggregator of choice.

Nonetheless, this airdrop from Uniswap has been very well received, and it exemplifies that consumers will continue to benefit from the growing competition to service our needs from both brands and technology providers.

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See you next time! — OB1

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