Regardless of rebranding to Parallel Finance for a better concentrate on the decentralized finance (DeFi) ecosystem, the nonfungible token (NFT) lending protocol ParaSpace will proceed to concentrate on its core product amid sector woes.
In a dialog with Cointelegraph, Yubo Ruan, founder and CEO of ParaSpace (now Parallel Finance), explains that the protocol makes use of a mix of diversified liquidity swimming pools, dynamic loan-to-value ratios and price-discovery partnerships to mitigate the dangers related to excessive volatility, which might usually end in an absence of bidders on the underlying asset.
“Regardless of the market downturn, we consider NFT margin lending stays viable,” stated Ruan. “It serves a distinct segment but rising sector of collectors and traders searching for leverage of their investments.”
In the course of the previous 12 months, NFT buying and selling quantity has plunged by 99% from its peak in Could 2022, though there have been indicators of stabilization with blue chip collections. “Within the close to future, we see the implementation of NFTs as digital passports that allow entry to each digital and real-world utilities,” Ruan commented. “Additionally, we’re wanting on the evolution of soulbound tokens that function non-transferable proofs of expertise, ability and popularity.”
Because the protocol rebrands to supply a better number of DeFi providers, Ruan stated the 2 major focuses are liquid staking and Parallel L2. Together with the acknowledged goals of attaining quick transactions with low gasoline charges, Parallel L2 additionally incorporates zero-knowledge proofs and Arbitrum Orbi to optimize for safety and scalability. In the meantime, Ruan defined that the protocol is “exploring the probabilities of integrating liquid staking with NFT lending” to permit NFT holders to earn yields on their staked belongings.
“Customers obtain a tradable spinoff token, representing their staked funding, which will be traded or used like different crypto tokens. This strategy addresses the everyday liquidity problem in staking, permitting customers to interact in different funding alternatives with out unstaking their belongings.”
Ruan based ParaSpace in 2022. Since then, the corporate has grown to a valuation of $500 million, with over 340,000 proclaimed customers. It reached a peak complete worth locked of $900 million in Could and subsequently merged with Parallel Finance in August.
We’re nonetheless working in our SF workplace. Simply need to give a fast replace to our group @ParaX_ai @ParallelFi
1. Parallel/ParaX is one dynamic model. ParaX is now Parallel (solely a reputation change).
2. Apologies for the LTV confusion – fastened!
3. Pudgy Penguins Oracle & LTV… pic.twitter.com/joHIepUXxh
— Yubo Ruan (@yuboruan) November 26, 2023
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