ParaSpace Launches NFT and Fungible Token Cross-Margin Lending Protocol

Today, ParaSpace introduced the very first platform of its kind, which is intended to facilitate cross-margin lending and was launched globally. Users have reported going through an increased amount of the downward spiraling liquidation process as a direct effect of the recent boost in NFT lending and borrowing. This is a direct consequence of the recent uptick in NFT lending and borrowing. The creation of ParaSpace was motivated by the need to fulfill the needs of customers operating within this sector by offering them a solution.

Yubo Ruan is the founder of ParaSpace, and it presently has the support of a diverse group of investors in the form of financial backing. These investors include Sequoia Capital, CoinBase Ventures, and Founders Fund, amongst others. The platform makes use of a cross-margin structure, which is what enables a peer-to-pool lending mechanism to operate effectively. By utilizing this method, the effectiveness of the loan process is increased, not only in terms of its liquidity but also of its exploitation of its capital. Holders of NFTs and users of NFTs now have the ability, for the very first time in the history of humanity, to combine a variety of assets into a single portfolio that can be used to lend, borrow, and hedge against risk. This was not previously conceivable.

“We have a positive outlook on a future in which NFT assets will proliferate with varying degrees of utility, applications, and most importantly, the capability to link to physical assets. Our goal is to create a decentralized protocol for cross-margin lending that is able to function in the real world and provides support for a varied collection of fungible and non-fungible assets. We hope that this will allow us to lend money to businesses that would not otherwise be able to do so. If we were to take this action, it would be a step in the correct path toward achieving our purpose.” This observation was made by Ruan, who is also the creator of ParaSpace and the current CEO of the company. In order for non-traditional forms of financing to be productive, “Users need to be able to hedge their risk and have flexibility on what assets they can borrow against and under what circumstances,” states the Financial Stability Board (FSB).

The network protocol known as ParaSpace, which is constructed on top of Ethereum, does not call for any permissions and is completely independent of any central authority. In addition to the blue-chip NFT collections that already exist, the platform is already capable of supporting a broad variety of fungible tokens, such as BTC, ETH, DAI, USDC, and APE. This is in addition to the blue-chip NFT collections that are already in existence. In addition to this, the platform’s capacity to process blue-chip NFT collections has increased. In the not-too-distant future, ParaSpace intends to put into operation a system that will make it possible for EVM-compatible or analogous blockchains to take part in cross-chain lending and borrowing activities. As a direct consequence of this development, the bitcoin industry as a whole will be in a position to take advantage of greater capital efficiency.

In order to commemorate the introduction of the platform, the company ParaSpace is planning to hold an event called an APE Coin Staking Fest. The purpose of the event is to give owners of Bored Ape NFT and APE the option to increase the rewards they receive from their holdings of APE by participating in the event and staking their APE. These users will be eligible to participate in referral programs, borrow APE at discounted rates, and qualify for ParaSpace’s APE airdrop, which will distribute up to $250,000 worth of APE to users who take part. Users will have access to all of these features for the duration of the APE Coin Staking Fest.

In conclusion, ParaSpace functions as a permissionless and highly adaptable infrastructure that solves a broad variety of unsatisfied criteria surrounding the efficient exploitation of on-chain capital. This is accomplished by removing the need for permissions from the equation. These standards pertain to the efficient exploitation of the capital that is held on-chain. Redefining non-fiat currency finance at ParaSpace has as its primary objective the expansion of access to web3 and decentralized financing to the point where an additional one billion people are able to make use of these services.

For More NFT News, Click Here.

Advertisement