Discover more from The MexicaNFTimes
ParaSpace Launches The First Cross-Margin Lending Protocol for NFT and Fungible Tokens
ParaSpace 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 is 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 ever, users and NFT holders can collateralize 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 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 decentralized and permissionless protocol built on Ethereum. Currently, the platform supports a wide range of fungible tokens including BTC, ETH, DAI, USDC, and APE in addition to existing blue chip NFT collections. To build capital efficiency across crypto space, ParaSpace plans to support cross-chain lending and borrowing for EVM-compatible or equivalent blockchains in the future.
To celebrate the launch of the platform, ParaSpace is hosting an APE Coin Staking Fest, 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, which will be giving away up to $250,000 worth of APE.
Ultimately, ParaSpace acts as a permissionless and highly customizable infrastructure to solve many unmet needs in efficient use of on-chain capital. ParaSpace seeks to redefine NFT finance to bring web3 and decentralized lending to 1 billion people.