FAQs : Key Concepts

We have recently updated our whitepaper and protocol as part of the ongoing evolution of Lithium as outlined in this article in basic terminology, premises, and our vision for our product.

In light of the recent whitepaper update and interest in Lithium’s testnet launch, we’ve received an uptick in the volume of questions from our community. We’d like to address each and every question in detail and look forward to answering more of them as our product evolves. Please let us know if you have any more questions after reading the FAQs below and we will get back to you as soon as possible.

Without further ado, here are the basics you need to know about Lithium Finance.

What is Lithium’s goal?

Our vision is to harness collective intelligence for better decision making.
Initially, Lithium Finance focuses on building a decentralized collective intelligence platform to gauge accurate market sentiment. These pricing information previously unavailable will facilitate liquidity and financial innovation for illiquid assets.

What are illiquid assets?

Illiquid assets are assets that lack an active market or a ready pool of buyers and sellers. These assets cannot be quickly transacted or exchanged without having to incur a substantial transaction cost. The market prices of which are not available for comparison or reference. Examples of illiquid assets include crypto projects, NFTs, real estate, antiques, private equities, artwork, and collectibles.

What problems does Lithium solve?

Lithium addresses the issue of unavailable pricing information of illiquid assets by bringing in accurate pricing through collective intelligence and tokenomics.
Lithium is applicable to both digital and real world assets, all Price Seekers have to do is to submit their enquiry attached with a bounty offer to receive genuine pricing information from Price Experts who in turn, are incentivized by our platform’s tokenomics (more on that later).

Is Lithium an Oracle?

Lithium should not be mistaken for a data oracle. A data oracle receives information from the outside world, such as daily temperatures, number of votes of a political candidate, successful transactions, or price changes to feed into its smart contracts and the underpinning blockchain. Lithium leverages on collective intelligence to aggregate data and produce first hand genuine pricing data that cannot be found anywhere else.

What are the differences between Price Seekers and Price Experts?

There are two main roles participants can assume in the protocol — Price Seekers and Price Experts — which allows them to interact and keep the ecosystem running smoothly.
Price Seekers are participants who enter the Lithium ecosystem in search of accurate pricing information on illiquid assets such as crypto projects, issuers, investors, lenders, and analysts. Price Seekers will submit questions on asset prices and offer a bounty to incentivize Price Experts to submit accurate pricing of the assets in question. The bounty will then be distributed to Price Experts with good performance.
Price Experts are participants who enter the Lithium ecosystem to offer their Price Estimates — to answer the Price Seeker’s Pricing Quests. Price Experts are subject matter experts or market participants with insights into the asset prices in question. They are usually brokers, traders or investors who are now motivated by the economic incentives up for grabs on Lithium.

About Lithium Finance

Lithium Finance is the first decentralized asset pricing mechanism powered by collective intelligence. We bring market participants together to estimate pricing for illiquid assets on demand.

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