Lithium Finance has announced a collaboration with Alameda Research to bring price transparency to the field of private equities, specifically in the secondary markets. Alameda Research is a well-known name in the crypto investment category and its expertise lies in analyzing investment opportunities that can be leveraged by investors in Silicon Valley and Wall Street. This collaboration will result in Alameda Research joining the Lithium ecosystem and focusing its efforts on collecting information related to the pricing of private equities.
The main advantage of this association will manifest in the pricing of private equity assets in the secondary markets. Most investors are not convinced about the transparency of the system used to determine the price of this particular asset category. However, the issue can be effectively addressed with the help of the Wisdom Nodes of the Lithium ecosystem. Further, the DMI mechanism will help consolidate the transparency credentials by determining the consensus on the answers provided by the Wisdom Nodes. Both these mechanisms are expected to increase the confidence of investors and will definitely lead to greater price discovery in the segment.
On a broader level, the implication of this collaboration is also crucial for the DeFi space. Many crypto experts believe that this will be particularly beneficial in bringing this private category of assets to the DeFi ecosystem. In other words, this will help create and develop a new stream of revenue for the players in the DeFi segment. This association makes a lot of sense for investors as the coming together of these two companies will lead to a greater degree of transparency in price determination and discovery in secondary markets. The most important concern of opaque price discovery in this category can be effectively tackled by this association.