5 months ago
The protocol volition grow to liquid staking and layer-2 solutions portion retaining its NFT lending services.
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Despite rebranding to Parallel Finance for a greater absorption connected the decentralized concern (DeFi) ecosystem, the nonfungible token (NFT) lending protocol ParaSpace volition proceed to absorption connected its halfway merchandise amid sector woes.
In a speech with Cointelegraph, Yubo Ruan, laminitis and CEO of ParaSpace (now Parallel Finance), explains that the protocol uses a operation of diversified liquidity pools, dynamic loan-to-value ratios, and price-discovery partnerships to mitigate the risks associated with precocious volatility, which tin often effect successful a deficiency of bidders connected the underlying asset.
"Despite the marketplace downturn, we judge NFT borderline lending remains viable," said Ruan. " It serves a niche yet increasing assemblage of collectors and investors looking for leverage successful their investments."
During the past year, NFT trading measurement has plunged by 99% from its highest successful May 2022, though determination person been signs of stabilization with bluish spot collections. "In the adjacent future, we spot the implementation of NFTs arsenic integer passports that alteration entree to some virtual and real-world utilities," Ruan commented. "Also, we're looking astatine the improvement of soulbound tokens that service arsenic non-transferable proofs of experience, skill, and reputation."
As the protocol rebrands to connection a greater assortment of DeFi services, Ruan says the 2 main focuses are liquid staking and Parallel L2. Along with the stated aims of achieving accelerated transactions with debased state fees, Parallel L2 besides incorporates zero-knowledge proofs and Arbitrum Orbi to optimize for information and scalability. Meanwhile, Ruan explains that the protocol is "exploring the possibilities of integrating liquid staking with NFT lending" to let NFT holders to gain output connected their staked assets.
"Users person a tradable derivative token, representing their staked investment, which tin beryllium traded oregon utilized similar different crypto tokens. This attack addresses the emblematic liquidity situation successful staking, allowing users to prosecute successful different concern opportunities without un-staking their assets."Ruan founded ParaSpace successful 2022. Since then, the institution has grown to a valuation of $500 million, with implicit 340,000 proclaimed users. It reached a highest full worth locked of $900 cardinal successful May and subsequently merged with Parallel Finance successful August.
We are inactive moving successful our SF office. Just privation to springiness a speedy update to our assemblage @ParaX_ai @ParallelFi
1. Parallel/ParaX is 1 dynamic brand. ParaX is present Parallel (only a sanction change).
2. Apologies for the LTV disorder - fixed!
3. Pudgy Penguins Oracle & LTV… pic.twitter.com/joHIepUXxh
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