Lithium Finance claims to be the world’s first on-chain oracle that uses collective intelligence for price discovery of unlisted and non-liquid assets such as private equity, pre-IPO stocks, and others.
Lithium Finance Set to Go Live on KuCoin
Lithium Finance, a blockchain project that claims to be focused on building a solid bridge between decentralized finance (DeFi) and traditional finance, through its one-of-a-kind pricing model, has chosen the KuCoin crypto exchange as its platform of choice for its initial exchange offering.
While a good number of blockchain projects, including Chainlink (LINK) and Band (BAND), already offer reliable and accurate on-chain price discovery services for real-world assets and more, Lithium Finance has made it clear that its solutions are far more sophisticated than what’s presently being offered by other platforms.
Specifically, the team claims LITH is the world’s first-ever on-chain oracle that leverages collective intelligence to provide highly accurate and real-time pricing for unlisted and illiquid assets such as pre-initial public offering stocks, non-current assets, and private equity that are almost impossible to value in the real world.
The Lithium Finance Advantage
Notably, the LITH price discovery system is powered by what the team calls the DMI mechanism, a system that basically relies on “Wisdom Nodes” and Wisdom Seekers.”
Explaining how the DMI mechanism works, Lithium Finance said:
“Wisdom Seekers provide LITH as a bounty for ‘answers,’ and those who provide ‘answers’ pledge LITH to show confidence in their ‘answers.’ this method of finding consensus by asking specific questions is called the DMI mechanism.”
The team describes LITH as a smart version of highly reliable platforms such as Crunchbase and PitchBook, however, the former takes advantage of the immutability property of the Ethereum smart contracts blockchain to “provide high-quality information,” thereby effectively tackling the problem of information asymmetry in the private market.
What’s more, the team further likens the workings of LITH to that Upshot, a project that pays experts for real-time NFT appraisals, however, LITH has more extensive use cases than the former.
“LITH is applied to the valuation of private unicorn company stocks and illiquid real-world assets other than non-NFT assessments. The application scenarios of LITH are more extensive Moreover, LITH is in a leading position in the field of illiquid asset pricing, and lacks strong competitors,” it added.
Co-Founded by Steve Derezinski and David Lighton, Lithium claims to be backed by highly-reputed venture capital firms, including Pantera, Hashed, and Alameda, amongst others.
Co-founder Derezinski is a senior lecturer at Babson University. He’s reportedly founded more than 80 startups to date and has raised over $250 million, according to the Lithium team.
Co-founder Lighton, on the other hand, worked as a researcher at the Haiti office of the World Bank and the Yale University Global Justice Project. He is the founder and CEO of SendFriend, a fintech firm that facilitates cross-border payments.
That’s not all, the Lithium team is also part of the brains behind two successful blockchain protocols: Linear (LINA) and Convergence (CONV).