ParaSpace launches cross-margin lending protocol for NFT and fungible tokens
By Edlyn Cardoza
ParaSpace recently launched a first-of-its-kind cross-margin lending platform. With the recent rise in NFT lending and borrowing, users have seen an increased liquidation downtrend spiral; ParaSpace serves as a solution for users in the space.
ParaSpace was founded by Yubo Ruan and backed by Sequoia Capital, CoinBase Ventures, Founders Fund, and others. The platform leverages a cross-margin framework that enables a peer-to-pool lending system that enhances liquidity and capital efficiency. For the first time, users and NFT holders can collateralise multiple assets into one portfolio to lend and borrow against while being able to hedge their risk.
“We believe in a future where NFT assets proliferate with different kinds of utility, applications, and especially the connection to real-world assets. Our vision is to create a decentralized cross-margin lending protocol with support for a wide variety of both fungible and non-fungible assets extending into the real world,” said Yubo Ruan, founder, and CEO of ParaSpace. “For NFT finance to be usable, users need to be able to hedge their risk and have flexibility on what assets they can borrow against and on what terms.”
ParaSpace is a fully decentralised and permissionless protocol built on Ethereum. Currently, the platform supports various fungible tokens, including BTC, ETH, DAI, USDC, and APE, in addition to existing blue-chip NFT collections. To build capital efficiency across the crypto space, ParaSpace plans to support cross-chain lending and borrowing for EVM-compatible or equivalent blockchains in the future.
ParaSpace is hosting an APE Coin Staking Fest to celebrate the platform’s launch to empower Bored Ape NFT and APE holders to hit the maximum returns for staking APE. ParaSpace’s APE Coin Staking Fest will allow users to borrow APE at reduced rates, participate in referral programs, and qualify for their APE airdrop, giving away up to $250,000 worth of APE.
Ultimately, ParaSpace acts as a permissionless and highly customisable infrastructure to solve many unmet needs by efficiently using on-chain capital. ParaSpace seeks to redefine NFT finance to bring web3 and decentralised lending to 1 billion people.
IBSi Daily News Analysis
March 01, 2024
Banking Sector and regulatory framework: addressing India’s growing demand for secure lockersRead More
IBSi FinTech Journal
- Most trusted FinTech journal since 1991
- Digital monthly issue
- 60+ pages of research, analysis, interviews, opinions, and rankings
- Global coverage
Other Related News
March 01, 2024