WHY IS PARIBUS BUILDING ON CARDANO?
Paribus is a decentralized, chain-agnostic network built on the Cardano blockchain that aims to revolutionize the standards of the conventional investment industry by enabling users to synthetically tokenize off-chain assets on the blockchain. Paribus also offers new income streams and utility to holders of non-fungible tokens (NFTs). In addition to offering a wide range of cross-chain interoperable decentralized finance (DeFi) instruments.
With the help of Cardano, Paribus can provide investors with innovative investment opportunities that aren’t available in the conventional investment sector as users can tokenize any off-chain asset that can be validated using Paribus’ novel approach to non-fungible tokens (NFTs) and decentralized finance (DeFi). Users may then employ these NFTs in the platform’s borrowing and lending procedures to give previously underutilized assets a new purpose.
In this article, we’ll explore the Paribus protocol and discuss why it is built on the Cardano blockchain.
WHAT IS CARDANO?
Cardano is an open-sourced, proof-of-stake-based decentralized blockchain that is regarded as a third-generation blockchain as it incorporates the strengths of earlier generations of blockchains and new technologies to adapt to its users’ evolving demands.
Cardano offers developers the tools and technology they need to explore and create solutions leveraging the almost limitless possibilities of blockchain technology. Hence, it powers several DeFi, NFT, and Metaverse-based applications.
Cardano was built to become a robust and long-lasting blockchain, based on the fundamental principles of interoperability, scalability, and security. Interoperability, which refers to the capacity to communicate with other systems, is a crucial element of Cardano architecture. Many experts in the field believe that the use of side chains is one of Cardano’s architectural innovations since it enables blockchain developers to classify the system and foster interoperability inside the blockchain.
Users may access a global financial ecosystem backed by the best-decentralized applications and smart contracts from anywhere in the world thanks to Cardano’s decentralized architecture. Combining Cardano’s value layer with the ability to store and process data on-chain via smart contracts might lead to the development of a wide range of integrated social and financial services.
As one of the first protocols to run on Cardano, Paribus offers several first-mover benefits. Thus Paribus is appealing to the steadily expanding user base interested in learning more about the Cardano blockchain.
Thanks to the seamless interoperability between Cardano and other blockchains, the Cardano blockchain makes it possible for the Paribus protocol to access and combine liquidity from several chains and decentralized finance (DeFi) assets.
Deploying a chain-agnostic, fully-interoperable decentralized finance (DeFi) protocol is a significant reason to use the Cardano blockchain. As a result, the Paribus network may allow its users to profit from their off-chain assets, which are then free to move throughout the DeFi market. The Cardano blockchain seems to be the best option for the project’s deployment of a DeFi application that is interoperable with many different asset kinds from several chains.
WHAT MAKES PARIBUS UNIQUE?
On Paribus, money markets, flexible deposits, withdrawals, buying, selling, borrowing, and lending are performed quickly, and loans are not subject to a maturity requirement. Paribus also enables liquidity providers on third-party platforms to generate rewards through the staking of their LP tokens. As an alternative, owners of LP tokens can use their investment as collateral when applying for a loan.
On the Paribus platform, all loans have 100% collateralization. This makes the platform secure, self-sufficient, and expandable. Additionally, the governance of the Paribus token (PBX) holders is liable for any update requests and direction.
ABOUT THE PBX TOKEN
The native token of the Paribus protocol, PBX facilitates network interaction and supports the platform’s decentralized governance. By possessing PBX tokens, users may influence the development of the protocol and the direction of the platform.
Collaboration between the protocol, its stakeholders, and their assets is one of the main goals of the PBX token. In this regard, stability and security are essential elements. In order to promote usage and participation, PBX token owners also earn a percentage of the transaction fees as a bonus. The payment is determined by the staked tokens; the larger the stake, the greater the reward.
Paribus protocol seeks to advance innovation in the expanding synthetic cryptocurrency assets movement within the decentralized finance (DeFi) sector. Simply put, investors of synthetic assets can access an underlying asset’s price without really owning or being responsible for it. The platform not only offers a remedy for the unused assets driving the DeFi application, but it also enables users to earn passive income using their non-fungible tokens (NFTs) and synthetic assets through the Paribus decentralized lending marketplace.
Find out more about Paribus and keep you with all their recent news and developments via the following links: