PARIBUS PROTOCOL
Paribus is a decentralized application (dApp) facilitating a permissionless and censorship-resistant borrowing and lending protocol for non-fungible tokens (NFTs) with cross-chain interoperability. Moreover, the application enables synthetic assets and liquidity positions. The project’s mission is to provide an all-in-one solution for synthesizing off-chain assets as NFTs and transforming them as financial instruments. Furthermore, to truly embrace the interoperable potential, NFTs are available to use across multiple applications on multiple blockchains.
Paribus states, “if it can be verified, it can be sold”. Offering a super-fast service thanks to Cardano, Paribus is offering new opportunities for investors, unavailable in the traditional investment industry. Using an innovative approach to decentralized finance (DeFi) and non-fungible tokens (NFTs), Paribus allows users to tokenize any off-chain asset that can be verified. Then, users can use these NFTs in the platform’s borrowing and lending protocols, generating new utility for otherwise under-utilized assets.
Some of the DeFi assets the application currently hosts include music, Ethereum Name Service (ENS) domain names, crypto collectibles, and insurance policies. Additionally, Paribus offers a non-custodial service, meaning users are always in complete control of their funds. Also, sticking with the true nature of the DeFi ethos, all Paribus code will be fully open-source, viewable, and free-to-use for the public. However, first, the project will subject the code to rigorous testing and audits.
Powered by Cardano...
As a long-time standing top 10 cryptocurrency, the Cardano blockchain offers frictionless interoperability with other blockchains. As such, the Cardano blockchain enables the Paribus protocol to access and aggregate liquidity from a variety of chains and decentralized finance (DeFi) assets. This includes cryptocurrency assets such as Cardano (ADA), Polkadot (DOT), and Ethereum (ETH). Plus, non-fungible token (NFT) assets such as digital art, virtual land, and synthetic assets.
Paribus is one of the earliest applications to launch on Cardano, bringing with it several first-mover advantages. In turn, this will give the platform exposure to the ever-growing market of users exploring the Cardano blockchain. As Cardano is only part way through its five-phase launch, the blockchain project anticipates continuous growth.
A key factor for choosing the Cardano blockchain is the ability to deploy a chain-agnostic fully-interoperable decentralized finance (DeFi) protocol. Resultantly, the Paribus network can offer its users the ability to generate value from their off-chain assets, which can flow freely across the DeFi industry. For the project, the Cardano blockchain appears the perfect choice for deploying a DeFi application compatible with numerous asset types from multiple chains.
PBX Token...
The native Paribus token (PBX) is the key to protocol governance, with the sole requirement of token holders to stake an amount of funds. At present, the team remains in large control of the protocol. However, coinciding with the project’s roadmap, Paribus plans on creating a decentralized autonomous organization (DAO) infrastructure within the next five years. This will transfer control of the network operations and protocol from the team to the PBX token holders.
The overarching goal of using the Paribus token (PBX) with governance is to offer anyone the opportunity to contribute. As such, PBX token holders from across the protocol will collectively align self-sustaining platform incentives. PBX token holders may take the role of investor, trader, or participant in the borrowing and lending protocol. Together, platform governance can benefit the Paribus protocol itself, asset security, and the project’s PBX token holders.
Moreover, the protocol offers Paribus token (PBX) holders the opportunity to earn a passive income. Using a tiered system, PBX token holders can stake their assets to earn a percentage of the fees accumulated by the protocol. Rewards are relative to the amount staked, with the more PBX tokens staked, the higher the percentage of rewards. In turn, this incentivizes locking up tokens, increasing scarcity and thus token value.
Paribus Protocol Users...
There are two key roles that users of the protocol can partake in, either as borrowers or lenders. The lenders of the platform could otherwise be referred to as “hodlers”. This collective is crypto investors hanging on to their assets with no plans to sell.
Playing a crucial role in the Paribus network ecosystem, the protocol incentivizes lenders on the platform. Paribus offers all lenders the opportunity to earn a passive income with their assets. Users need only to stake, while the protocol safely lends out their assets, earning users interest for doing so. This is while the many types of underlying assets could be increasing in value simultaneously, offering asset holders multiple sources of income. Moreover, the platform provides annual percentage rate (APR) calculations to allow lenders to estimate their returns on different assets. In turn, the role of lenders can be likened to liquidity providers, offering assets as liquid capital for the protocol to lend out.
The second user role of the Paribus network is the borrower. Borrowers can only take out fully-collateralized loans. This means borrowers must deposit at least 100% of the value of the funds they wish to borrow. Indirectly, this essentially means borrowers are also liquidity providers. However, borrowers are key to the smooth-running of protocol operations paying a small one-off fee for taking out a loan. Furthermore, borrowers are subject to paying a small interest rate on the loan. The funds from which are reinvested into the protocol and PBX token holders.
Paribus Network Features...
The Paribus protocol strives for innovation in the growing synthetic cryptocurrency assets movement within the decentralized finance (DeFi) industry. In short, synthetic assets allow holders to gain price exposure to an underlying asset without owning or having responsibility for said asset. Witnessing unprecedented growth of the industry throughout 2021, the Paribus network wants to allow users to put their synthetic assets to work. Alongside presenting a solution for underutilized assets powering the DeFi application, the platform offers users the ability to make a passive income with their synthetic assets and non-fungible tokens (NFTs) through the Paribus decentralized lending marketplace.
At present, the platform website presents six key features for creating and utilizing non-fungible tokens (NFTs) and synthetic assets. Paribus hopes in the future that NFT marketplaces will become as liquid and accessible as the traditional cryptocurrency asset market. The platform aims to be at the forefront of this innovation and development.
BENEFITS...
↔️ The Paribus protocol allows users to take advantage of non-fungible token (NFT) collateral-based loans. In short, users can present any NFT asset and stake it in the Paribus borrowing protocol. Then, users can borrow funds against the underlying NFT while the value of the asset appreciates.
↔️ Another use case for non-fungible token (NFT) holders is to earn rewards on staking. Users can stake their NFTs with Paribus in similar NFT pools (e.g., music NFT pools, domain name pools, etc.). As a result, users begin to earn a yield on their assets, generating a passive income stream
↔️ The project provides various staking pool options for various liquidity provider (LP) tokens from multiple blockchains. The chain-agnostic protocol offers competitive staking facilities for a range of cross-chain assets.
↔️ Users of the Paribus network can leverage their liquidity provider (LP) positions by borrowing against their LP token stake. With full collateralization, Paribus users can borrow against liquidity positions of multiple popular automated market makers (AMMs).
↔️ The project is one of the first live applications on the Cardano blockchain offering staking facilities for synthetic assets. Moreover, the platform offers borrowing and lending options with synthetic assets too. Additionally, Paribus presents full “investment flexibility” operating across any blockchain.
↔️ Paribus offers all its PBX token holders the chance to generate passive income through staking their tokens in a tiered system. In return, PBX token holders accrue a percentage of platform fees in PBX tokens.
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