Lithium Finance has teamed up with Solana-based decentralized auction platform MonkeyBids to improve the accuracy and accessibility of valuation for digital and physical collectables. By fusing Web2 and Web3, MonkeyBids promotes the “collector’s economic circle,”. Here, every product is collectable and each buyer is guaranteed to have a one-of-a-kind item.
How Lithium and MonkeyBids aim to support the NFT market
MonkeyBids, through this partnership, will introduce a novel technique of value to the world of decentralized auctions for the benefit of customers. The partnership will aid users in quickly assessing the state of the market and the value of their collections in the dynamic Web3 landscape. Before each auction begins, Lithium compiles the general consensus of the community. This reassures collectors about the demand for each item at an auction.
Instead of relying on a single expert’s opinion to determine an asset’s worth, as is the case with conventional auction houses, Lithium uses decentralized methods based on collective intelligence and machine learning. As the first distributed NFT valuation system driven by AI and DL, it is a game-changer. Lithium utilizes cryptoeconomics to incentivise and aggregate community opinion in order to disclose the market’s anticipation on illiquid assets like rare NFT.
Using community incentives to convey market sentiment, the Lithium protocol seeks to redefine the current valuation of NFTs. According to MonkeyBids, the two organizations may also collaborate in the future to host events at which members of the public may help determine an item’s value and place bids. If you can guess the total amount of a transaction as closely as possible, you could win a substantial prize.
Although the NFT market shows promise, it faces obstacles, such as the absence of a standardized method for determining prices. Unfortunately, this has opened the door for criticism of the sector, with some even calling it a bubble. However, the number of practical applications for NFT is growing, and this bodes well for the technology’s long-term viability. Furthermore, valuation protocols like Lithium Finance will promote user confidence concerning the intrinsic value of digital collectables.