A cross-chain borrowing and lending protocol for NFTs, liquidity positions, and synthetic assets, powered by the Cardano blockchain.

Interoperable Value Leveraged
As DeFi moves forward, innovators are uncovering transformational ways to store and represent value on-chain.

Paribus’ mission is to unlock the true potential of these assets, evolving them into interoperable financial instruments, capable of being used within DeFi protocols, on any chain.

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Paribus

A few unexpected stories emerged in the previous bull market, such as the massive popularity of NFTs and play-to-earn games. These concepts captured people’s attention in Web3, demonstrating that cryptocurrencies were more than just a tool for trading.As we anticipate the upcoming bull market, these narratives are poised to take center stage again. However, this time, they will come with greater depth and complexity. For instance, one hot topic in the NFT space will be tokenizing real-world assets rather than pictures of monkeys.During the last cycle, Axie Infinity dominated headlines and shaped the conversation around games in crypto. Many others tried to replicate its success, but few succeeded. It wasn’t Axie’s gameplay or user-friendly setup that made it a hit. In fact, it was initially confusing for those unfamiliar with wallets and blockchain technology. Surprisingly, this didn’t deter users.<img class="image_resized" style="width:680px;" src="https://miro.medium.com/v2/resize:fit:1400/1*SufDXXm8KAA8wr4hiVDUng.jpeg" alt="" loading="lazy">The gameplay of Axie could have been more engaging and intricate, and if it were a mobile game, it might not have made the same impact. What set it apart was the ability for players to earn money through the game and seamlessly transfer those earnings using a blockchain.The next wave of games in this cycle will have a different story. However, they will still revolve around how players can earn money while playing. Tournaments are one approach, but stiff competition often means limited earnings for most players.Rather than a straightforward play-to-earn model, the next generation of games will need to unlock more value from the gaming industry and distribute it to a broader audience. Figuring out how to achieve this is a challenge that major game studios are actively researching.Epic Games, known for Fortnite, recently experimented with decentralizing content creation, allowing users to create their own content and rewarding them. While it seemed like a Web3 approach, it was more in line with Web2.The problem for Epic Games was that their primary revenue source came from creating content, and they inadvertently undermined their business model. As a result, they had to lay off many employees because they outsourced content creation without a clear strategy for monetizing it.Other game studios are taking a different approach, realizing that Web3’s essence lies in user ownership rather than content creation. People are willing to pay for access to games and in-game purchases, but they are increasingly frustrated with the closed-off approach that prevents them from leveraging the value they’ve invested in the game.It’s evident that the future of gaming revolves around empowering users to own the items they’ve created, earned, or bought in-game. The most effective way is to transfer the items on-chain as NFTs.<img class="image_resized" style="width:680px;" src="https://miro.medium.com/v2/resize:fit:1400/1*shmh2yxQI9EHgD_jR2tlJw.jpeg" alt="" loading="lazy">With the gaming industry generating over $350 billion of revenue in 2023, unlocking even a tiny fraction of that value by incorporating NFTs into games could lead to significant growth in Web3. Integrating in-game assets on-chain gives users independence and ownership they can trust, which will be essential to encourage them to spend more in-game.As the gaming narrative gains momentum, users will seek ways to expand their gaming NFT portfolios and, like with other NFTs, may want to use them as collateral for loans rather than selling them. This is why we’ve dedicated so much time and effort to developing Paribus’s NFT aspect.The previous bull market was a proof of concept for NFTs and gaming. In this bull market, major studios will step into the arena. We intend to be ready for this and other hot trends so that Paribus can lead the way in NFT borrowing and lending.<h1 style="margin-left:0px;">Join Paribus</h1><a href="https://paribus.io/">Website</a> | <a href="https://twitter.com/paribus_io">Twitter</a> | <a href="https://t.me/paribus_io">Telegram</a> | <a href="https://blog.paribus.io/@paribus_io">Medium</a> | <a href="https://discord.io/paribus">Discord</a> | <a href="https://youtube.com/@Paribus_Crypto">YouTube</a>

From Axie to Assets

Over the past few weeks, expectations have been high for a surge in the crypto market, spurred by the launch of the new Bitcoin Exchange-Traded Fund (ETF). With some influencers talking of a six-figure Bitcoin, the lure of quick and easy money seemed irresistible to some. The reality, however, was a modest increase in value, followed by a dip.Unfortunately, the focus on price action took away from the significance of the actual event. The Securities and Exchange Commission (SEC) approval changes the future of the entire cryptocurrency market because it directly undermines their previous negative stance towards them.While its chair, Gary Gensler, will undoubtedly continue his critical comments about crypto, the fact that the ETFs were approved en masse makes those views harder to justify. In recent years, Gensler has become a caricature of everything that’s wrong with crypto regulation in the US, and that hasn’t gone unnoticed by the politicians he has to explain himself to.<img class="image_resized" style="width:680px;" src="https://miro.medium.com/v2/resize:fit:1400/1*-td6A0PwA-TVfLia7Y5qgA.jpeg" alt="" loading="lazy">In particular, Gensler faces the challenge of reconciling the SEC’s endorsement of Bitcoin in ETFs while simultaneously engaging in legal battles with other crypto projects. The clock is ticking on his approach to regulation through enforcement.The new ETFs differ from previous ones, which were based on futures contracts and didn’t hold actual Bitcoin. The fact that the new ETFs have Bitcoin signals the SEC’s recognition of it as a legitimate asset. This shift also allows the average American to invest in crypto through standard investment channels, such as 401(k) retirement funds.While some expected an immediate surge in Bitcoin’s value following their launch, more experienced analysts predicted a gradual effect due to how people invest in ETFs. They also anticipate they will appeal more to long-term investors, which could help to reduce market volatility.The role of BlackRock in the process is worth noting because they are known for working closely with regulators to help stabilize markets. As such, they were always unlikely to do anything to cause a sudden price spike.A factor surrounding the approval most people have missed is how it will generally change the narrative around cryptocurrencies. For instance, BlackRock holds significant stakes in many mainstream media companies and won’t look favorably on heavily critical coverage of one of their products.<img class="image_resized" style="width:680px;" src="https://miro.medium.com/v2/resize:fit:1400/1*6ljtMUvyKU41YhIDzcOG6Q.jpeg" alt="" loading="lazy">Whatever happens in the short term will probably be driven by the emotional swings of retail traders rather than the ETFs. Over the longer term, however, the value of Bitcoin and, consequently, most other cryptos will likely rise.Also, we still have the halving to look forward to in April, following which the markets should heat up further to herald the arrival of the long-awaited bull market. However, this time, the money that flows into crypto could surpass previous bull markets due in part to the ETF approval.While the changes ahead won’t be radical overnight pivots, they will bring crypto into more mainstream acceptance. Furthermore, when Elon succeeds in turning X into the ‘everything app,’ crypto will become as familiar as PayPal.Against this backdrop, our development is continuing, and we look forward to celebrating the launch of the new features we’ve been working so hard on. The combination of our action-packed roadmap, the halving, a bull market, and the growth in NFT tokenization of real-world assets looks set to make this year one to remember.<h1 style="margin-left:0px;">Join Paribus</h1><a href="https://paribus.io/">Website</a> | <a href="https://twitter.com/paribus_io">Twitter</a> | <a href="https://t.me/paribus_io">Telegram</a> | <a href="https://blog.paribus.io/@paribus_io">Medium</a> | <a href="https://discord.io/paribus">Discord</a> | <a href="https://youtube.com/@Paribus_Crypto">YouTube</a>

From Expectation to Reality

Over the past few weeks, the crypto market has bounced continuously, bringing waves of joy and fear. The media has practically run out of stories regarding ETF approval or rejection, and fatigue has set in.However, this situation illustrates why crypto needs borrowing and lending platforms like Paribus. Those who think crypto loans are unnecessary are missing an important point.Take the example of owning a Rolex watch but needing money to pay some bills. You know you can sell the watch for a few thousand dollars but want to keep it.Most people would take it to a pawnbroker, who offers a loan in exchange for the watch. The watch is returned if it’s paid back on time with the required interest. In crypto, the same situation can happen with tokens that people hold.<img class="image_resized" style="width:680px;" src="https://miro.medium.com/v2/resize:fit:1400/1*klqG3NLKFiD--ZtLC0OWjg.jpeg" alt="" loading="lazy">Say someone has Bitcoin they bought when they caught the dip. Their bills are due, and they are considering selling the tokens to pay them. However, with news of the Bitcoin spot ETF approval being highly likely soon, they want to hold onto them.In this example, the Rolex is a unique item with sentimental value, whereas Bitcoin is Bitcoin with no sentimental value. Yet, from the point of view of reluctance to sell, both are identical.Borrowing and lending platforms for crypto operate in much the same way as pawnbrokers. There are no credit checks and no delays in getting funds. The only condition is that the collateral must be higher in value than the loan.However, a crucial difference is that crypto borrowing and lending platforms charge a much lower interest rate than pawnbrokers. Also, there are no time limits on the term of the loan. It remains active if the loan-to-value ratio remains above the liquidation point.Additionally, we’re developing a way for users to liquidate part of their collateral, rather than all of it, to withstand significant market fluctuations. On the other hand, a pawnbroker will liquidate a loan in full as soon as they get a chance.Pawnbroker loans are usually for a 30-day term at an interest rate of around 20%. The interest isn’t worked out annually; it’s on a 30-day basis. So, if the loan were rolled over every 30 days for a year, the annual rate would be 240%.<img class="image_resized" style="width:680px;" src="https://miro.medium.com/v2/resize:fit:1400/1*Ce3Hghrf8W_e3kzREU4OiA.jpeg" alt="" loading="lazy">Although the interest rate on Paribus operates dynamically, fluctuating according to supply and demand, it’s often less than 7% for loans. Crucially, this is the annual rate, so if applied to a 30-day loan, it would be 0.57%.There’s also a good reason for having many different borrowing and lending platforms in DeFi. As with all markets, when users only have a choice of one or two providers, it’s easy for monopolies to occur. To prevent this from happening, there needs to be a variety of platforms people can choose from.This competition helps to prevent any platform from grossly inflating its borrowing rates. Furthermore, when systems operate on a decentralized rather than a centralized framework, rate calculations are hard-coded into the platform.Overall, the best solution for the health of crypto and its supporters is for DeFi to grow and become more established. This helps users keep their funds within crypto, unlocking its liquidity when needed without losing their tokens.

Selling Isn’t the Only Option

With the New Year being a time for resolutions, it seems the ideal moment to release our roadmap for 2024. A word of caution, though, as with all roadmaps, the dates aren’t set in stone.There can be setbacks with blockchain development due to audit findings and changing market conditions. However, we’ve made tremendous progress in many areas of the platform and are excited to share these with you.<h2 style="margin-left:0px;">Q1</h2>We start the year by releasing the eagerly anticipated governance module on mainnet. We also have the NFT lending module lined up for testnet release and then mainnet release in January.February should see the liquidity provider (LP) module complete its audit and launch onto the testnet for our community to try out. If all goes to plan, March will see the implementation of our KYC solution, a key feature for Paribus Pro, along with the launch to mainnet of the LP module.<h2 style="margin-left:0px;">Q2</h2>This quarter, we’ll emphasize ways to expand Paribus’s reach to help more people unlock the liquidity of their digital assets. One aspect of this will be to expand the number of chains we’re on. In addition to reaching more users across different chains, we’ll also be looking to cater to crypto’s growing institutional adoption.As more institutions enter the crypto space, they’ll be looking for regulation-compliant solutions, which is why we’ve designed Paribus Pro. This version has baked-in KYC and other market-driven features to ensure it’s both regulator and institution-friendly.<h2 style="margin-left:0px;">Q3</h2>Building on the growth of development within the space and, in particular, the synthesis of digitizing physical assets, this quarter will be devoted to real-world asset (RWA) integration. RWAs are set to be a huge growth sector, reminiscent of the explosive popularity of NFTs in the last bull market.To capitalize on this, we’re positioning Paribus to be able to offer RWA collateralization. Therefore, this quarter will see our RWA module’s audit, testnet, and mainnet launch. Combined with the institutional grade Paribus Pro, this looks to be a very exciting quarter for everyone.<h2 style="margin-left:0px;">Q4</h2>During bull markets, crypto sees a massive inflow of capital, both in terms of retail investors and venture capital firms funding new projects. Therefore, we must ensure our long-term success by maintaining a competitive advantage.We aim to do this by implementing a market data driven approach to our interest and yield systems. This exciting feature will enable us to offer more competitive rates by having a closer integration of the interest rate model with market fluctuations.During this quarter, we’ll have a closed beta test of this module. We also aim to launch this as soon as the conditions allow, hopefully by the year’s end.This year is set to be one of the most exciting, both for Paribus and the crypto market as well. We’re delighted that you, the community, are an integral part of our journey.<img class="image_resized" style="width:680px;" src="https://miro.medium.com/v2/resize:fit:1400/1*DKFJx4K7u489SE5sMRdIRQ.jpeg" alt="" loading="lazy"><h1 style="margin-left:0px;">Join Paribus</h1><a href="https://paribus.io/">Website</a> | <a href="https://twitter.com/paribus_io">Twitter</a> | <a href="https://t.me/paribus_io">Telegram</a> | <a href="https://blog.paribus.io/@paribus_io">Medium</a> | <a href="https://discord.io/paribus">Discord</a> | <a href="https://youtube.com/@Paribus_Crypto">YouTube</a>

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