Understanding the Use Cases of the Paribus Native Token, $PBX
A chain-independent protocol called the Paribus network uses the Cardano blockchain. The program hosts a large variety of cross-chain interoperable decentralized finance (DeFi) instruments, providing holders of non-fungible tokens (NFT) with new utility and revenue sources. With the help of the Paribus protocol, users can tokenize off-chain physical assets and use them as DeFi tools and assets across the industry in a variety of applications. The site will also be run by the community of Paribus token (PBX) owners, a permissionless protocol that aims towards decentralization. Additionally, Paribus offers PBX token owners the chance to use cryptocurrency to generate a passive income.
The Paribus protocol intends to transform the traditional investment industry by identifying numerous revenue opportunities. The ability to synthetically tokenize off-chain assets on the blockchain, while still in development, represents a new investment paradigm. Nonetheless, many digital, synthetic, and non-fungible assets are currently being used with the Paribus protocol.
The platform enables holders of commonly traded non-fungible tokens (NFTs) to earn passive returns on their investment in addition to any natural asset appreciation. Paribus is a profitable solution for NFT holders with assets that don’t have much active utility, such as digital art or crypto collectibles. Furthermore, insurance policies linked by smart contracts and Ethereum Name Service (ENS) domain names are NFTs that may have few interactions during the holding period. As a result, the platform provides these asset holders with the opportunity to earn returns while sleeping. This also applies to virtual landowners and music NFTs, though these may provide additional revenue streams on their own.
In addition to non-fungible token (NFT) utility, the Paribus platform allows liquidity providers (LPs) and automated market makers (AMMs) of other decentralized exchanges (DEXs) to earn a yield on their liquidity positions. LPs can stake their LP tokens in one of the Paribus protocol’s relevant LP staking pools. Holders can also leverage their position by taking out a fully collateralized loan against their LP token stake. Furthermore, the Paribus network enables anyone to mint synthetic assets with transparent collateral on-chain via a permissionless, borderless protocol.
The PBX Token
The native Paribus token (PBX) is the key to protocol governance, with token holders only required to stake a certain amount of money. The protocol is currently under the team’s control. However, in accordance with the project roadmap, Paribus intends to build a decentralized autonomous organization (DAO) infrastructure within the next five years. This will hand over control of the network operations and protocol from the team to the holders of PBX tokens.
The overarching goal of utilizing the Paribus token (PBX) with governance is to allow anyone to contribute. As a result, PBX token holders across the protocol will align self-sustaining platform incentives. Holders of PBX tokens can act as an investor, trader, or participant in the borrowing and lending protocol. Platform governance can benefit the Paribus protocol, asset security, and the project’s PBX token holders all at the same time.
Furthermore, the protocol allows Paribus token (PBX) holders to earn a passive income. PBX token holders can stake their assets to earn a percentage of the protocol’s fees using a tiered system. The percentage of rewards is proportional to the amount staked; the more PBX tokens staked, the higher the percentage of rewards. As a result, locking up tokens is incentivized, increasing scarcity and thus token value.
About Paribus Protocol
As DeFi progresses, innovators are discovering transformative methods to store and represent value on-chain.
Paribus’ mission is to realize these assets’ full potential by transforming them into interoperable financial instruments that can be used within DeFi protocols on any chain.
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