ParaSpace Rebrands to Parallel Finance; Maintains Core Focus and Explores New DeFi Strategies
Summary:
The non-fungible token (NFT) lending protocol, ParaSpace, has rebranded to Parallel Finance to concentrate more on the decentralized finance (DeFi) sector. Despite the rebranding, the firm remains committed to its core product, countering the high market volatility with strategic measures. The company is keen on using NFTs as digital passports as well as non-transferable tokens that display users' skills and reputations. It will maintain its focus on liquid staking and Parallel L2, plus aims to combine liquid staking with NFT lending. Founded in 2022, ParaSpace has grown to a worth of $500 million and merged with Parallel Finance in August.
ParaSpace, the non-fungible token (NFT) lending protocol, has undergone a rebranding process to become Parallel Finance, intending to further concentrate on the decentralized finance (DeFi) sector. Yubo Ruan, the founder and CEO of the now-renamed Parallel Finance, emphasized in an interview with Cointelegraph that the core product offering will not change despite the rebrand. The protocol employs various strategic methods such as diversified liquidity reservoirs, adjustable loan-to-value ratios, and price-determination partnerships to manage potential risks linked with high market volatility and bid shortages.
Ruan maintains his belief in the viability of NFT margin lending even amidst market downturns, pointing out its utility to a focused, yet expanding group of traders and collectors seeking to enhance the value of their investments. Despite a 99% drop in NFT trading volume this past year from its highest point in May 2022, blue-chip collections hint at market stability. Ruan anticipates the use of NFTs as digital passports that facilitate access to virtual and real-world utilities playing a significant role in the near future, along with the advent of non-transferable soulbound tokens that serve as credentials for experience, skill, and reputation.
As Parallel Finance expands to provide a broader range of DeFi services, Ruan underscores liquid staking and Parallel L2 as the two main focal points. In addition to reaching its goals of swift transactions and low gas fees, Parallel L2 also uses zero-knowledge proofs and Arbitrum Orbi for better security and scalability. Ruan further explained that Parallel Finance is considering marrying liquid staking with NFT lending to allow NFT holders to generate returns on their staked properties.
Ruan established ParaSpace in 2022, which has since grown to be worth $500 million and boasting over 340,000 registered users. The firm achieved its highest total value locked of $900 million in May and later merged with Parallel Finance in August, demonstrating its progress and evolution.
Published At
12/4/2023 5:21:22 PM
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