A cross-chain, collateralized loan platform aiming to help users unlock the liquidity of a wide variety of digital assets.
Through the Paribus protocol users can uncover and unlock the value of their digital assets either by staking them as borrowable or by putting them up as collateral for over-collateralized loans. The features for both borrowers and lenders on the platform include the following:
- Lend, borrow and stake synthetic assets
- NFT staking: pool value with other like-NFTs and earn yields
- NFT collateral-based loans
- AMM Liquidity Position collateral-based loans
- Tired staking of the platform’s token for a share of the platform’s profits
- Synthetic asset minting, backed by on-chain collateral
The Paribus protocol will offer chain agnostic lending and borrowing of both conventional and unconventional digital assets, operating under the mantra of:
"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."
Borrowers will pay a one-time, fixed platform fee, currently 0.2%, when they want to set up a loan. These fees are added to protocol “reserves” to act as a safeguard against loan defaults and to help prevent abuse by short-term borrowers.
Interest rates for borrowing on the protocol are dynamic and based around the utilization rate of the selected pool of assets, and are also dependent on the size of reserves for that pool of assets.
Liquidation occurs on the platform when the collateral laid down for the loan falls below a set value threshold, or when the borrowed asset's price increases in value above a set value threshold.
Paribus will use oracles alongside amalgamating quotes from the top 12 exchanges.
The PBX token is the platform's governance token and token owners will be able to create and vote on platform governance proposals.
Holder of the token will also receive a percentage of fees generated by the platform, which are distributed proportional to the size of the token holder’s holdings.