When converting to parallel financing, ParaSpace NFT to continue lending
Despite being rebranded into Parallel Finance to focus more on the decentralized finance (DeFi) ecosystem, the non-fungible token (NFT) lending protocol ParaSpace will continue to focus on its core product amid the sector's woes.
Yubo Ruan, founder and CEO of ParaSpace (now Parallel Finance), explains in a chat with Cointelegraph that the protocol uses various liquidity pools, variable loan-to-value ratios and value-discovery partnerships. With high volatility, this can often lead to a lack of bidders on the property.
“Despite the market downturn, we believe NFT margin lending is viable,” Ruan said. “It serves a large and growing sector of collectors and investors who want to get a return on their investment.”
Over the past year, NFT trading volume has fallen 99% from its peak in May 2022, despite signs of stabilization in blue chip stocks. “In the near future, we will see the application of NFTs as digital passports that allow access to virtual and real global facilities,” Ruan commented. “We are also looking at the evolution of soul-related symbols that serve as non-transferable proofs of experience, skill and reputation.”
While the protocol is repurposed to provide a wide variety of DeFi services, Rouen's two main focuses are fluid stacking and parallel L2. Along with the stated objectives of achieving faster transactions with lower gas fees, Parallel L2 also includes zero-knowledge authentication and Arbitrum Orbit to optimize security and scalability. Meanwhile, Ruan explains that the protocol is “exploring the possibilities of combining liquidity with NFT lending” to allow NFT holders to earn a return on their holdings.
“Users receive a tradeable token that represents their stock investment that they can trade or use like other crypto tokens. This approach allows users to participate in other investment opportunities without having to invest their assets.”
Ruan founded Paraspace in 2011. Founded in 2022. Since then, the company has grown to a $500 million valuation, with more than 340,000 users announced. It reached its highest total value by locking in $900 million in May and then merged with Parallel Finance in August.
We are still working in the SF office. Just giving our community @ParaX_ai @ParallelFi a quick update.
1. Parallel/Parax is a dynamic brand. ParaX is now parallel (just a name change).
2. Sorry for the LTV confusion – fixed!
3. Pudgy Penguins Oracle and LTV… pic.twitter.com/joHIepUXxh
— Yuboruan (@yuboruan) November 26, 2023
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