INTRODUCTION
Since the creation of Bitcoin in 2009, cryptocurrency markets have risen from $0 to over $2.5 trillion. One of the most common applications for cryptocurrencies at the moment is a type of decentralized finance (DeFi). Since the 2020 “DeFi Summer,” DeFi’s growth has been exponential. The development and distribution of a huge number of dApps aimed at addressing various challenges that users are now facing have spurred the rise.
The rapid evolution of DeFi has caused pain points and contributed to underdeveloped markets. Unconventional crypto assets develop on a regular basis and go mostly unutilized.
Paribus is tackling this issue by offering a method to turn idle assets into productive assets. Paribus aims to convert these assets so that they are more suitable for liquid and effective market circumstances by boosting non-traditional assets’ interoperability, predictability, and reliability.
There are now dApps that allow market investors to earn passive income while their underlying assets grow in pace with overall cryptocurrency demand, prohibiting exit and promoting entry into crypto markets. However, with the introduction of NFTs and the increased demand for this ecosystem’s unique art, audio, and even GIFs, there is now a new gap to fill that necessitates solutions to remove barriers and unlock greater liquidity across the market.
Lending is the major gateway instrument for empowering NFT owners since it allows them to have access to liquidity and capital by simply locking their assets as collateral. Liquidity is the ultimate fuel for crypto, or any market for that matter, to allow for growth and innovation.
Meet Paribus
Paribus is a Cardano-based cross-chain lending/borrowing platform that aims to support both traditional and unconventional crypto assets, allowing users to access liquidity and interact with markets without having to liquidate assets. This protocol will also support an approved list of liquid assets across different chains, as well as give users access to a frictionless comprehensive ecosystem based on Cardano, which we feel is the inevitable next generation of blockchains.
The principle which is of utmost importance to Paribus is “If it can be verified, it can be sold. If it can be sold, there is intrinsic value. If there is intrinsic value, this value can be leveraged”.
Paribus is a protocol that provides DeFi holders and investors with a platform for extending the reach of their digital assets as well as the chance to leverage liquidity holdings. One of Paribus’ primary goals is to investigate financial tools and products for NFTs, as well as to create a consolidated location where users may easily and freely engage in this financial revolution.
Paribus Products
Due to the nature of Cardano and its ability to plug into current blockchains, Paribus will use and enhance this capacity by default to unleash liquidity across chains across a variety of assets. Paribus will support NFTs, Virtual Lands, and Synthetics in addition to more standard assets such as ADA, ETH, and DOT.
- Virtual Lands: This is a growing phenomenon, with land fetching up to $900,000 in a recent Decentraland sale. With the addition of innovations from the VR industry to the mix, demand for these assets quickly becomes an interesting asset class for DeFi protocols to be able to support. Paribus aims to address exactly this, by proposing a suite of SmartContracts that allow for collateralization with Virtual Lands.
- Non-fungible Tokens (NFTs): They have increased in prominence, with demand for these digital goods expanding tremendously while attracting the attention of the mainstream media. The capacity to tokenize valuable assets regardless of physical appearance and/or features creates new opportunities and problems. Paribus intends to address one of these concerns and raise the economic value of these tokens by increasing liquidity and providing choices for leveraging this economic power without selling the NFT altogether.
- Synthetics and LP Tokens: These are a new dimension that has swiftly acquired traction as a result of platforms such as Synthetix and Uniswap. Wealth is being created with both assets at an increasing rate. Paribus believes that as bitcoin demand and user base develop, we will witness a whole new generation of cryptocurrency investors, a fraction of whom will go on to become knowledgeable DeFi users. Paribus will create a borrowing and lending product line to further leverage the underlying assets and offer more sophisticated use cases with Synthetics and LP tokens.
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