Logo
Cardano Ecosystem

Coinspeaker

07/27/2023

·

163 views


Paribus to Launch Token Rewards

Paribus, a cross-chain lending and borrowing protocol that supports interoperability in Cardano, is excited to announce the launch of its dynamic token rewards.

Paribus to Launch Token Rewards

Paribus, a cross-chain lending and borrowing protocol that supports interoperability in Cardano, is excited to announce the launch of its dynamic token rewards. The project has allocated 100 million PBX tokens that will be issued as rewards to borrowers on the lending platform.

Paribus estimates that the rewards should last around one month. Each loanable asset has been allocated its own PBX reward pool. Bitcoin (BTC) and Ether (ETH) have the largest reward pools, with 40 million PBX tokens each, while USDT has 20 million tokens.

The token rewards are scheduled to be released evenly across every block. For USDT, the figure is 115.74 PBX/block, while for both BTC and ETH, it stands at 231.48 PBX/block.

These rewards will be split proportionately across borrowers in each block. Therefore, they will operate dynamically depending on the number of borrowers. The fewer the borrowers, the higher their rewards will be. This means that the first to borrow will receive the highest rewards.

Borrowing against Unconventional Assets

Non-fungible tokens (NFTs) have grown to become a huge part of the crypto ecosystem. But despite how valuable they’ve shown they can be, NFTs are largely stagnant assets. In the current decentralized finance (DeFi) scene, NFT owners have limited ways of generating passive income without having to sell their assets.

Unfortunately, this is also the case for other digital assets that are not cryptocurrencies. These include virtual land and synthetic assets like LP tokens. Together with NFTs, these ‘unconventional assets’ have remained largely underutilized, leaving a staggering amount of liquidity locked and idle in users’ crypto wallets.

This is a problem that Paribus is designed to solve. The solution will provide a platform where holders of unconventional crypto assets can truly capitalize on their value. Here, users have the ability to use NFTs, virtual land, and LP tokens as loan collateral. This will allow them to unlock new levels of liquidity without having to sell their assets.

Overall, this is a much-needed solution in DeFi. But there are challenges that come with utilizing assets like NFTs in lending and borrowing mechanisms. For example, the value of NFTs is subjective, which often makes valuation and liquidation difficult. LP tokens are also subject to systemic protocol risk.

Paribus’ solution to this is to make these assets more interoperable, predictable, and reliable. The year-long turbulence within the NFT market has allowed the Parabis team to design, test, and improve advanced NFT valuation algorithms that it believes are the best-adapted solution to the volatility around NFT valuation.

These algorithms allow for a level of scaling and accuracy currently unavailable in any other solution, which will help the protocol provide loans instantly.

About Paribus

Paribus is a cross-chain lending and borrowing protocol that aims to provide a platform for users to unlock liquidity by giving them a way to derive value from traditionally stagnant assets. To do this, the protocol supports the use of unconventional assets like NFTs, virtual land, and synthetic assets, as well as conventional assets like USDT, as collateral for taking out DeFi loans.

Social Media Links: DiscordTwitterLinkedIn.

AD

Cardano Catalyst Project - Discover and Vote for our proposals in Fund 13 by December 12, 2024 11:00 UTC

If you are you using your ADA to vote in Cardano’s Project Catalyst don’t forget to voice your vote. We would be excited if you can see, comment, share and vote for us. Cast your vote today, find our proposals by searching "CardanoFeed" in the Voting App.Vote for Us


Read Original Article on Coinspeaker

ORIGINAL SOURCE

https://www.coinspeaker.com/paribus-laun...

Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.


An image that says Learn Blockchain technology and get ahead in the industry with a link to the Cardano Academy.

More from Coinspeaker

See more
Have Ripple's latest moves affected XRP negatively?
Coinspeaker
Have Ripple's latest moves affected XRP negatively?

02/01/2024

·

240 views

Related News

See more

Featured News

See more



    DEFAULTENGLISH (EN)SPANISH (ES)RUSSIAN (RU)GERMAN (DE)ITALIAN (IT)POLISH (PL)HUNGARIAN (HU)JAPANESE (JA)THAI (TH)ARABIC (AR)VIETNAMESE (VI)PERSIAN (FA)GREEK (EL)INDONESIAN (ID)ROMANIAN (RO)KOREAN (KO)FRENCH (FR)CZECH (CS)PORTUGUESE (PT)TURKISH (TR)