Most DeFi lending platforms only accept popular assets like ETH, BTC, or USDC, which
means users with other valuable assets (such as tokenized collectibles) can't use them to
borrow funds. This acts as a limitation for users who hold unique or comparatively less
common or valuable assets.
In 2025, Uniswap LP tokens represent a significant portion of the liquidity within the Uniswap
ecosystem. While precise figures fluctuate, Uniswap, with its V3 version, offers a high level
of capital efficiency, allowing LPs to provide liquidity with up to 4000x more efficiency than
V2. (Source: Uniswap)
However, the majority of lending protocols still don't allow these tokens as collateral. Due to
this reason, it has become comparatively difficult for certain users to unlock the value of the
tokens they already own.
