Illiquid Asset Pools

Definition ∞ Illiquid asset pools are collections of assets that cannot be quickly or easily converted into cash without significant loss of value. In the digital asset space, these pools might comprise non-fungible tokens (NFTs), real-world assets tokenized on a blockchain, or early-stage venture capital investments represented by digital securities. Their limited market depth means large transactions can cause substantial price movements. Accessing liquidity for these assets often requires specialized platforms or lending protocols.
Context ∞ The current discussion regarding illiquid asset pools centers on innovative methods for enhancing their tradability and utility within decentralized finance. A key debate involves the accurate valuation of these unique assets and the development of robust pricing oracles. Future developments will likely include the creation of more efficient secondary markets for tokenized illiquid assets and the emergence of new financial primitives designed to unlock their capital potential.