SALIENT FEATURES OF THE PARIBUS PROTOCOL
Paribus, a pioneering cross-chain lending and borrowing platform built on the Cardano blockchain, offers a revolutionary method for monetizing verifiable off-chain assets by fusing non-fungible tokens (NFTs) with decentralized finance (DeFi).
Paribus’ ultimate objective is to harness untapped on-chain value across the entire crypto industry as it strives to create cross-chain liquidity for a wide range of traditional and non-traditional digital assets, such as liquidity positions, synthetics, virtual land, and NFTs. Thanks to its cutting-edge dynamic interest rate algorithm, Paribus is in a position to lead the industry in terms of uncovering and fully realizing the intrinsic value of NFTs and other unconventional assets.
The features of the Paribus protocol are built to develop along with new classes of crypto assets, capturing the value contained in the burgeoning network of interconnected blockchains. The Paribus protocol aims to direct this financial energy in hitherto impractical ways, expanding opportunities for investors. In this article we briefly discuss these features, to comprehend their significance to users of the Paribus protocol and the entire DeFi ecosystem at large.
In addition to enabling users to benefit from lending, borrowing, and staking synthetic assets, Paribus also offers extraordinary throughput, low cost of transactions, security, and several other features which include but are not limited to the following:
● PBX Tokens
The native governance token of Paribus, PBX, enables holders to draft and decide on protocol-related proposals. The ultimate objective of the PBX token is to align the Paribus yield protocol’s incentives, resulting in a codified harmony between stakeholders, the protocol, and the security of the assets it contains.
● NFT collateral-Based loans
Non-fungible token collateral-based loans are available to users on the Paribus protocol as they can utilize any NFT asset in their possession as collateral to acquire loans. As the value of the asset increases, customers may then borrow funds against the underlying NFT.
● NFT Staking
Users can also generate yield on their NFT assets by pooling their NFT stakes with those of other similar NTFs. As a result, users get a return on their investments without having to sell the NFTs, making it a viable source of passive income.
● LP Collateral-Based Loans
Holders of LP tokens can use their investment as collateral when applying for a loan. On the Paribus platform, all loans have 100% collateralization. This makes the platform secure, self-sufficient, and expandable.
● LP Staking
With Paribus, customers can access several blockchain-based liquidity pools’ market-specific staking pools for LP tokens. Native staking for the PBX token is made available on Paribus, delivering a dynamic APY and substantial incentives. Liquidity providers from third-party platforms can also generate rewards by staking their LP tokens.
Currently, Paribus allows users to stake their tokens in its staking pool. Users can invest between 1,000,000 and 6,000,000 PBX for 365 days (with fewer than 5 months left) in the gold pool Aurum for a least 30% APY payoff level.
● PBX Token Profit Sharing
All PBX token owners are given the opportunity to earn passive revenue by staking their tokens in a tiered scheme — Greater tiers and higher percentages are gained with higher stakes — Holders of PBX tokens receive a portion of platform fees in PBX tokens in exchange.
● Integration With The Metaverse
Paribus is integrated with the metaverse, and this functionality allows users to easily unlock liquidity from metaverse plots and assets.
Another outstanding feature of the Paribus protocol is its dynamic interest rate algorithm. This algorithm is used to determine the interest rate for each token currently available on Paribus. This algorithm calculates an interest rate based on the market’s requirements after determining the supply and demand for a certain item.
Furthermore, Paribus loans do not include a payment schedule for either traditional or exotic assets. The borrower decides when, how frequently, and how much to pay back. Nevertheless, users are advised to pay attention to the interest rates and liquidation zone.
Paribus makes it possible for non-fungible tokens to be used on several blockchains. Users of the platform have the option of either staking their NFTs to earn a return or using them as collateral for borrowing money. Furthermore, Paribus makes it possible to mint off-chain real-world assets in order to tokenize them on-chain in conjunction with the booming crypto synthetics industry. Owners of these synthetic NFTs can then decide to employ them as financial instruments by tapping into the decentralized finance (DeFi) market.
Hence, Paribus provides DeFi investors with a platform for expanding the global reach of their digital assets and positions as the capability of borrowing and lending against a broad range of assets is being combined for the first time on one platform in a decentralized, permissionless manner.
Find out more about Paribus and keep you with all their recent news and developments via the following links: