Gate.io AMA with Paribus-Invest in DeFi,Redefine Your Yield

2023-05-31, 06:18

Time: Jan 17th, 2022, 13:00 UTC
Gate.io hosted an AMA (Ask-Me-Anything) session with Deniz,CEO & Co-Founder of Paribus in the Gate.io Exchange Community.
Official Website: https://paribus.io/
Twitter: https://twitter.com/paribus_io
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Guest

Deniz — CEO & Co-Founder of Paribus

Q&A from Gate.io

Q1: Can you let us know a bit about yourself and about Paribus?

Deniz: Sure!

I’m Deniz, CEO & Co-founder of Paribus. I have worked as a software engineer for 12 years, the last 5 years being in the crypto space. I have a BSc and MSc in Software Engineering and have loved software and code from a very young age albeit I’m more on the business and vision aspect of Paribus as a CEO.

Paribus is the first of its kind cross-chain lending/borrowing platform on Cardano. We have a sophisticated and dynamic interest rate algorithm that will unlock liquidity across chains through a range of crypto assets such as liquidity positions, synthetics, virtual land and NFTs. Our vision is to allow all of these crypto assets to be used as collateral for loans taken out in conventional crypto assets. The idea and vision for the platform came about as the NFT market and amount of liquidity within that space grew year on year. We thought to ourselves, why not use this value to unlock liquidity and finance additional ventures rather than selling an asset outright.

Q2: Great, so what can users do with Paribus?

Deniz: Paribus is a cross-chain borrowing and lending platform that leverages both conventional and non-conventional assets to allow end users to facilitate their ventures without outright sale of their assets. You can, as an NFT owner, get a valuation, deposit it into a pool and borrow stablecoins against it based on a dynamic interest rate model. Like NFTs we will be supporting Virtual Lands and synthetics to leverage their underlying value and offer liquidity to our end users on dormant or less liquid assets. Aside from non-conventional assets we do of course accept collaterals in the form ADA, ETH, BTC and more.

Q3: Sounds interesting. So you’d be able to get NFT collateral based loans, can you explain to me how that would work?

Deniz: The idea is based on pooled NFTs. We envision operating NFT pools which allow for depositing of NFTs based on set certain features/traits that deem the NFT to be equal value to the rest of the NFTs in that pool. An NFT holder will in return receive tokenized representation of their NFT. They can then use these tokens to deposit into our NFT Borrowing Pool(s), where they can borrow against it based on a dynamic interest model.

Once a user is ready to repay their loan they can take back their tokenized NFT tokens and retrieve their NFT (or equivalent of it) into their wallet. What sets our model apart if we have begun putting together data sets to feed into our ML algos to help with valuations and identification of similar NFTs. Streamlining this process will allow us to better value NFTs thus truly allowing end users to leverage their assets to the maximum capacity. The same process will be applied to Virtual Lands, which technically speaking are NFTs with their unique specialized traits.

Q4: Ok, sounds sophisticated for sure. Also, what is the purpose of the Paribus ($PBX) token?

Deniz: For sure, interesting and scope is very broad which is why I strongly believe Paribus is a game-changer for non-conventional assets.

Our governance token PBX has been thoughtfully created for our community. For our PBX token, we have three primary use cases: 1) There will be better borrowing rates for those who are PBX holders. 2) Reward Sharing, any PBX holders taking part in our liquidity programs will get to share rewards. 3) Governance, PBX holders will be able create, vote and implement improvement proposals. Our community will be able to add new features and/or edit existing functionalities with the power of PBX Governance.

Q5: How would users be able to earn interest in the future from the $PBX token? Will there be any incentives (other than better borrowing rates you already mentioned) for PBX holders?

Deniz: Users will be able to earn interest in two ways on Paribus.

1) deposit funds into borrowing pools making liquidity available to be borrowed and earn interest based on the dynamic interest rate model that is implemented.
2) Users will be able to earn a share of fees the platform generates on each loan creation and redemption.

All fees will go back to PBX stakers and/or buy-back & burn programmes.

Q6: Great! Are there any plans in the future for Paribus to have Cross Chain capabilities?

Deniz: Yes, Paribus will build bridges with both EVM and non-EVM based blockchains. Depending on the chain that is being bridged we will utilize technologies such as IBC(Inter Blockchain Communication) Protocol and/or Cross-Chain Interoperability Protocol (CCIP). We want to integrate with as many chains as possible and being on Cardano greatly helps our goals on being interoperable.

Q7: Sounds good! So then what are the plans for Paribus in the next 6 months?

Deniz: Our main goal for the next 6 months is to release our MVP on Arbitrum. Next iteration immediately to follow MVP will be integration of synthetics as collaterals. From thereon we are solely focusing on NFTs and how best to integrate them into our platform as per our litepaper. Full roadmap of paribus can be found here: https://blog.paribus.io/paribus-the-road-ahead-ad7acd3bc935

Author: Rio Fu., Gate.io Community

*This article represents only the views of the researcher and does not constitute any investment suggestions.

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