Why Choose Paribus Protocol?
The Paribus protocol aims to innovate in the decentralized finance (DeFi) sector’s growing synthetic cryptocurrency assets movement. In other words, synthetic asset holders can gain price exposure to an underlying asset without actually owning or managing it. The Paribus network wishes to enable users to use their synthetic assets as the industry grows at an unprecedented rate through 2021. In addition to providing a solution for underutilized assets that power the DeFi application, the platform allows users to generate passive income through the Paribus decentralized lending marketplace using their synthetic assets and non-fungible tokens (NFTs).
The platform website already has six essential elements for creating and using non-fungible tokens (NFTs) and synthetic assets. According to Paribus, NFT markets will eventually match the accessibility and liquidity of the standard bitcoin asset market. The platform aims to lead this innovation and development through the following features:
Synthesizing Non-Fungible Tokens
The Paribus protocol allows users to benefit from non-fungible token (NFT) collateral-based loans. By presenting it, users can stake any NFT asset in the Paribus borrowing protocol. Customers can then borrow money against the underlying NFT as the asset’s value rises.
Earning rewards for staking is another use case for non-fungible token holders (NFT).
Paribus allows users to stake their NFTs in similar NFT pools (e.g., music NFT pools, domain name pools, etc.). As a result, users begin to receive a return on their investments, creating a passive income stream.
The project provides a variety of staking pool options for various liquidity provider (LP) tokens from various blockchains. The chain-agnostic protocol provides competitive staking facilities for a variety of cross-chain assets.
Paribus network users can leverage their liquidity provider (LP) positions by borrowing money against their stake in LP tokens. Paribus users can borrow money with full collateralization against the liquidity positions of numerous well-known automated market makers.
The project is one of the first active Cardano blockchain apps to support digital asset staking. The platform also allows for borrowing and lending with synthetic assets. Paribus also provides complete “investment flexibility” that works with any blockchain.
Last but not least, Paribus allows all PBX token holders to earn passive revenue by staking their tokens in a tiered scheme. Holders of PBX tokens receive a portion of platform fees in exchange for PBX tokens.
The Paribus Use Cases
The Paribus protocol seeks to modernize the conventional investment sector by spotting several profit-generating opportunities. The capacity to synthetically tokenize off-chain assets on the blockchain represents a new investment paradigm even though it is still in development. Nevertheless, the Paribus protocol is currently being used with a large number of digital, synthetic, and non-fungible assets.
In addition to any appreciation in natural assets, the platform gives holders of widely traded non-fungible tokens (NFTs) the chance to earn passive returns on their investment. Paribus offers a lucrative option for NFT owners of assets that don’t have a lot of active utility, such digital artwork or crypto collectibles. Additionally, insurance policies linked through Ethereum Name Service (ENS) domain names and smart contracts are NFTs that might only interact sporadically while being held. As a result, the platform gives the owners of these assets the opportunity to earn returns while they sleep. This also holds true for virtual landowners and music NFTs, despite the fact that these may also offer additional distinct revenue sources.
In addition to non-fungible token (NFT) utility, the Paribus platform enables automated market makers (AMMs) and liquidity providers (LPs) of other decentralized exchanges (DEXs) to profit from their liquidity positions. Within the Paribus protocol, LPs can stake their LP tokens in one of the appropriate LP staking pools. Additionally, holders can strengthen their position by taking out a fully-collateralized loan against the stake they have in the LP token. Additionally, the Paribus network makes it possible for anyone to mint synthetic assets with visible collateral on-chain thanks to a permissionless, borderless protocol.
In conclusion, the under-utilization of otherwise idle non-fungible token (NFT) assets is another issue Paribus is addressing. The liquid NFT market will be completely flexible, free-flowing, and interoperable thanks to Paribus.
Do well to visit www.Paribus.io to learn more!
