Paribus (PBX) Launches DeFi Platform to Enable Borrowing Against NFTs and other Digital Assets
Paribus is launching a DeFi-based borrowing platform, allowing users to borrow against their digital assets in a revolutionary way. Allowing previously stagnant assets like NFTs to be used as collateral for loans.
The Paribus DeFi platform is attempting to take DeFi to the next level. Paribus has stated they are “building for Cardano.” However, many community members are still uncertain what exactly that means, and the Paribus team has yet to publicly clarify that.
Also, Cardano’s interoperability removes the restrictions imposed by the isolated ecosystem, allows value to flow freely, and increases the potential of the protocol and its users. However, presently Paribus builds on Ethereum (ETH).
The Paribus DeFi platform protocol
Paribus offers DeFi holders and investors a platform to extend the reach of their digital assets and positions around the globe. For the first time one platform is bringing together the functionality of borrowing and lending against a huge variety of assets, in a decentralized and permission-less way.
The team designed the features and protocol of Paribus to evolve with new crypto asset classes. In addition, they capture the value stored in the emerging universe of interconnected blockchains. The Paribus protocol sets out to channel this monetary energy in previously impossible ways, creating even more opportunity for investors.
Combining NFTs and DeFi
With Paribus, users can even borrow against their NFT investment. This will free up capital while the underlying NFT will hold its value intact. Also, Paribus allows users to stake NFTs with pool value with other like-NFTs, allowing users to generate yield on their NFT assets.
Next, in addition to NFTs, users can also borrow against their AMM liquidity positions through the Paribus protocol. This will allow users to leverage up while staking or earning through LP’ing.
Staking in liquidity pools
With Paribus, users get access to the market specific staking pools for LP tokens from multiple blockchain based liquidity pool which allows for the following benefits:
- Cheap transactions
- Incredibly high throughput
- Security and reliability
Meanwhile, Paribus is now offering native staking for the PBX token on their platform, offering a dynamic APY and high rewards. Two pools remain open, Argenti and Aurum. These pools are only open for a limited time.
The PBX token on the Paribus DeFi platform
PBX is Paribus’ native governance token. PBX allows its owners to create and vote on the future of the network. The ultimate goal of PBX tokens is to coordinate incentives across the Paribus Revenue Protocol to create a systematic harmony between the security of stakeholders, the protocol itself, and internal assets.
In addition, owners of the PBX tokens can receive a percentage of the fees the protocol earns, in proportion to their stakes. Finally, the more users stake, the higher their tier and the higher percentage they earn.
Initial tokenomics
In the ICO, Paribus sold 40% of the token supply at 1 PBX = 0.0003 USD.
Key takeaways
- The Paribus DeFi platform lets users borrow against NFTs and AMM liquidity positions.
- PBX is the native governance token, and owners receive a percentage of protocol fees in proportion to their stakes.
- Native PBX staking is open in the Argenti and Aurum pools for a limited time.
Related reading on Creative Geniusess
- What is Paribus (PBX) and what are the Tokenomics?: lending markets for previously un-leveraged digital assets.
- Paribus ($PBX) Team Interview – Real World Assets, NFT Loans & Use Cases, Oracles on Cardano ($ADA): real-world asset tokenization on Cardano.
- Paribus (PBX) Has Burned 1.2 Billion coins Equaling 12% Of Max Supply of $PBX Tokens: the ongoing burn schedule.
Learn more about NFTs on Wikipedia.
