Now that our Mainnet V1 is gradually building its total value locked (TVL) and we’ve successfully integrated an Ethereum to Cardano bridge with Chainport, we’re busily working on the next raft of developments for Paribus. In our recent Town Hall on X spaces Deniz, our CEO revealed some exciting progress along with outlining a vision for the future of Paribus that takes interoperability to a whole new level.
Because the landscape in crypto is vast in terms of chains and protocols, many people tend to focus primarily on their favorites. However, we’ve always understood that the future of Web3 is interoperability, which has underpinned many of our development decisions.
Most recently, with the launch of a new Ethereum layer-2 solution from Coinbase called Base, we’ve been researching how well their offering fits Paribus. Deniz explained, “We are speaking to Coinbase to see about deployment potential on the Base network. We are planning around that. Although we don’t have a concrete date yet, Base is our next target.”
Aside from the technical hurdles of deploying across different chains, it’s also essential to pace development. Deniz clarified, “We do have roadmap items in terms of deploying onto other chains, but of course, before deploying, we need to think about how to increase TVL on any deployment because it’s no good having deployments lacking TVL and utility. So we want to go one step at a time.”
Another aspect of having multiple versions of Paribus operating across different chains is the potential for differences in rates to occur. As our system operates a dynamic interest rate model, these rates vary according to liquidity and demand for each asset type.
It’s an issue Deniz is already contemplating how to address, “When we have Paribus deployed on multiple chains and we live across different EVM worlds, what we could possibly do is use something like IBC or Layer Zero to allow the Paribus protocol regardless of which chain it is on to communicate with one deployment to another.
“It’s something that I want us to start working on once we deliver the USPs. But this is quite an interesting concept that will differentiate Paribus from all other cross-chain borrowing and lending platforms.”
Another area we are actively working on is accepting liquidity provider (LP) tokens as collateral. Many decentralized exchanges (DEXs) issue LP tokens to people when they lend their assets to the DEX liquidity pool. As such, the LP tokens have an intrinsic value because they can be redeemed for the underlying assets.
It’s a subject of intense interest to us, as Deniz describes, “I’m quite surprised that not many DeFi protocols have support for such collateral types, especially given that it’s so ubiquitous in this space. Everyone pretty much has some form of LP token, so there are a lot of LP tokens sitting idle that can be leveraged. So I think that we’re going to be one of the first to support such collateral types.”
Deniz continued, “We’ve been developing the LP aspect alongside the governance and NFT side for the last two months. Our developer has given us an update that the first part of the LP side is now finished, which is the ability to track prices of the underlying assets of the LP and then provide that price feedback onto our protocol.
“Now that side is finished, it’s on the code review, and then the second part is the liquidation mechanism for the LP tokens. That is under development, but we’re making very good progress on the LP side, and we hope to have that live maybe two months after the NFT module.”
For those familiar with our approach to development, it’s always a moving target in Web3. For example, as we were preparing to launch our governance system on Arbitrum, Milkomeda updated its offering, which meant both were viable options.
Over time, our community has grown to more deeply understand the process, and we appreciate the continual support and encouragement we receive from them. While the present market conditions aren’t ideal for anyone, we continue to build and grow, irrespective of price.
@CardanoFeed - Follow us on X (formerly Twitter)
Stay informed with the latest $ADA Cardano news in real time.FOLLOW NOW!