Paribus Chain as a Tool to Revolutionise Non-fungible Tokens

Lending is the main catalyst mechanism for empowering NFT owners since it enables them to access liquidity and capital by simply locking up their assets as security. NFT borrowing and lending as a standard service is, however, a difficult but obvious concept in DeFi. There are undoubtedly further uses, including derivative-style items and the OTC rental of a resource to another user for a specific amount of time. With liquidity situations, there are also chances to borrow and lend. Users would essentially be given the chance to create income while receiving benefits from liquidity providers.

These more recent but rapidly developing uses are the space’s forward-moving drivers. Paribus’s mission is to give people a decentralized avenue where they may quickly and freely take part in this financial revolution. As of now, lending platforms and DEXes have taken the lead, with exotics following slowly. However, Paribus is expanding on what has already been established and moving forward iteratively in response to vast available possibilities and in anticipation of demand.

In order for holders of non-fungible tokens, liquidity positions, and synthetic assets to properly benefit from their value, DeFi apps are necessary.In order to enable its users to access liquidity and engage with the markets without having to sell assets, Paribus, a Cardano-based lending and borrowing platform, supports both traditional and novel crypto assets.

At Paribus, the underlying modus operandi is based on the idea that “If it can be sold, there is a market value. If it has value, it can be modeled”.Due to the nature of Cardano and its capacity to integrate with current blockchains, Paribus will by default make use of and expand this capacity to free up liquidity across chains for a variety of assets.

NFTs, virtual lands, synthetics, as well as more conventional assets like ADA, ETH, and DOT, are some of the assets that Paribus will handle. Cardano will enable the Paribus protocol to connect countless assets across several blockchains while remaining chain agnostic. Cardano’s interoperability eliminates barriers and permits unrestricted value transfer.

The PBX Token
There has been a lot of interest in how these protocols might address issues related to business models since the decentralized autonomous organizations (DAOs) were first introduced in 2016. It might be challenging to establish an organization or business strategy that permits a decentralized structure of authority. Decentralization and teamwork are powerful forces, in our opinion.

Proposals can be made and voted on by PBX owners with the aim of enhancing the protocol. By establishing this feedback loop, the protocol and its stakeholders’ connection will improve and good adjustments will be encouraged. The fee sharing function of the PBX token is one of its additional features. A portion of the fees collected will go to the holders. Those who have more tokens will receive a larger share of this. Stakeholders gain from holding while being rewarded for doing so, which encourages further holding.

Lenders
Any DeFi platform’s fundamental component is the lender. These individuals are often what are referred to as “HODLers” in the bitcoin world. They do not intend to liquidate their cryptocurrency holdings entirely. This user group will have another way to generate passive income through Paribus as their underlying assets increase in value over time.

The ecosystem’s liquidity is provided by lenders, who are compensated with interest for their services. The platform will offer a Deposit APR(%) depending on variables like usage rate. The Deposit APR(%) for a certain asset can be used by lenders to roughly predict their earnings.

To keep the system self-sufficient and sustainable, liquidations are in place. Liquidations may be carried out by computers, other dApps, or people using the liquidate function on the “Liquidation Manager” contract when a user’s borrowing balance surpasses their entire collateral value as a result of decreasing asset prices and/or rising asset prices for borrowed assets. By using this function, the assets of the invoking party will be exchanged for the borrower’s collateral at a price that is less expensive than the market rate.

Borrowers
Paribus will only function as a platform for secured loans. implying that in order to borrow against an asset, a borrower must first deposit the asset. As a result, in order to ensure that the platform is sustainable and self-sufficient, borrowers also serve as indirect liquidity providers. Every borrower is required to pay both the interest that has accumulated over the loan’s term and a tiny, upfront set platform charge.

Borrow fees apply to each and every borrow. Currently, this has a hardcoded value of 0.2%. The charge will be applied to the overall amount borrowed and shown on the user’s dashboard as appropriate. These charges will accrue and be put toward protocol reserves. This charge is meant to act as a “safeguard” against mistreatment of short-term borrowers. The DAO Governance mechanism will allow for changes to the charge schedule.

Risk
Considering the characteristics of the interest rate model and its capacity to dynamically modify itself in response to market circumstances. Understanding the above model is essential for both borrowers and lenders to prevent exorbitant interest rates and/or liquidations.

Purchasing Paribus and Investing
Since its formal launch in the month of August 2021, the Paribus chain has established itself as one of the most talked-about currencies in the cryptocurrency market. In light of this, it is sensible to state that PBX is a fantastic investment option with outstanding promise and interest. Paribus (PBX) is available for purchase on cryptocurrency exchanges including KuCoin. These niche markets, which function like stock trading platforms, let you purchase and sell bitcoins.

Through the Paribus website at paribus.io, a user or HODLer may stake Paribus. Developers have worked really hard to make it as simple and open as possible, and it is incredibly user-friendly. Currently, Paribus provides staking in their pools for silver and gold. Users can invest between 500,000 and 3,000,000 PBX in the silver pool Argenti, which is locked for 180 days in exchange for a payout level at at least 25% APY.

Other Use Cases of the Paribus chain
Paribus is a cross-chain borrowing and lending protocol for NFTs, liquidity positions, and Conversely. Due to its many applications, it is more valuable and an attractive investment. The following usabilities show certain use cases:

The Capital One Store
The Capital One Shopping features now include Paribus, a free tool that rapidly looks for discounts, lower pricing, and incentives. Your favorite Price Protection features are used to connect your Paribus account with a Capital One Shopping account.

Delivery tracking using Amazon
Paribus is now keeping track of the delivery of your Amazon online orders, and in the event that a delivery is delayed, it will ask Amazon for compensation on your behalf. The fact that you keep all of the is the finest part. They provide this service for no cost to you.

Conclusion
NFTs have a rising asymmetrical market base and are deserving of a place at the DeFi table. Holders of these new and verifiable assets will be able to generate revenue through the loan and leasing markets. According to Paribus, the NFT markets will eventually reach fair market value and attain the same level of liquidity as the majority of tradeable cryptocurrencies. Owners of a certain cryptocurrency asset will be able to use their tokens to feed the Paribus network and earn interest, unlike NFTs. This is passive, almost risk-free, and rewarded with the associated denominated token. Where there is intrinsic value, this value may be leveraged so that users can keep the upside potential of a specific asset while earning more money through the loan marketplace offered by Paribus. There is no need for the user to actively manage this because it is trustless. Cardano’s speed and pricing structure provide clear efficiencies for any organization, dApp, or token owner.