Introducing Lithium Finance

Lithium Finance — a new type of pricing oracle that uses collective intelligence to price the unpriced — could be the key to open the door and bring real-world assets into the DeFi space.

Lithium Finance is an on-chain pricing oracle that fills one of the most important missing links between real-world asset investment and DeFi. The protocol leverages collective intelligence to price real-world assets, especially assets that are hard to value, such as pre-IPO stocks, private equity, and other illiquid assets.

There are two major stakeholders in the Lithium system: Wisdom Nodes; and Wisdom Seekers. Those seeking answers to questions about the price of an asset will use LITH tokens — Lithium’s native token — to provide a bounty, and those with expertise in delivering answers will stake LITH to signal confidence in their answers. This method of finding the dominant truth by asking subject questions is known as the Determinant-based Mutual Information mechanism or DMI-Mechanism.

Traditionally the only way to price a real-world asset is to hire expert appraisers who have been trained and hold credentials. The process is slow and expensive and therefore limited to few assets. With Lithium Finance and its powerful DMI mechanism, we will be able to source prices for any asset through a decentralized honest-rewarding protocol, all on-chain.

Lithium Finance is working to build an on-chain pricing oracle to price real-world assets more efficiently, more transparently, and more accurately.

📰 INFO:

https://lithiumfinance.medium.com/introducing-lithium-finance-7457b0113899