PARIBUS' IMPACTS IN DEFI SPACE

Since Bitcoin's inception 12 years ago, the cryptocurrency market has grown from zero to over $2.5 trillion. Decentralized finance (DeFi) is currently one of the crypto asset use cases that is expanding at the fastest rate. Since the "DeFi Summer" of 2020, DeFi has grown at an exponential rate.

A plethora of dApps, all of which are attempting to address a variety of issues that users face today, have sprouted as a result of the rapid growth.

Paribus is a new lending and borrowing platform based on Cardano that aims to support conventional and unconventional crypto assets so that its users can access liquidity and interact with the markets without having to sell assets. At Paribus, we adhere to and place a high priority on the following principle:

There is a market value for it if it can be sold. Paribus is continuing to iterate forward in the face of existing opportunities and in anticipation of demand. If it has value, it can be modeled.

DeFi applications should be developed so that holders of non-fungible tokens, liquidity positions, and synthetic assets can truly capitalize on their value. Paribus's primary objective is to provide a single location from which users can easily and unrestrictedly participate in this financial revolution. Exotics are slowly gaining traction, but Dexes and lending platforms have led the way so far.

In the DeFi Space, Paribus has played a significant role in a number of ways. It has already provided a means for bringing some ideas to light, and Paribus' method of implementation is as follows:

LIQUIDATIONS The system is kept self-sufficient and sustainable through liquidations. Through the liquidate function on the "Liquidation Manager" contract, liquidations can be carried out by machines, other dApps, or humans when a user's borrowing balance exceeds their total collateral value due to a falling price of an underlying asset or an increase in the price of a borrowed asset. When this function is called, the assets of the party calling it will be exchanged for the collateral of the borrower at a lower rate than the market average.
• PRICE FEEDS To ensure that asset exchange rates accurately reflect their true value, Paribus makes use of Oracles' most trustworthy price feeds. For our end users, whether they are borrowers or lenders, Paribus will combine quotes from the top 12 exchanges to provide the best rates.
• FEE STRUCTURE Each borrow is charged a fee. Currently, this is set to 0.2% by default. The fee will be added to the total amount borrowed and shown on the user dashboard in the appropriate amount.
Protocol reserves will be augmented by the accumulation of these fees. The purpose of this fee is to act as a "safeguard" to stop short-term borrowers from being abused. Governance votes will be used to alter the fee rate.
• Risk due to the interest rate model's inherent capacity for dynamic self-adjustment in response to market conditions. To avoid high interest rates and/or liquidations, it is essential that both borrowers and lenders comprehend the aforementioned model.
By transferring power to make changes from the top executive to any stakeholder in the company, DAOs aid in the resolution of many of these issues. A DAO's autonomy provides additional advantages because, once implemented, there is no room for human error or non-compliance with an agreement. We are convinced of the value of group cooperation and decentralization.
Since the decentralized autonomous organization, or DAO, was established in 2016, there has been a lot of interest in how these protocols can resolve business model-related issues. It can be challenging to develop a business model or company that permits a decentralized power structure. By transferring power to make changes from the top executive to any stakeholder in the company, DAOs aid in the resolution of many of these issues. A DAO's autonomy provides additional advantages because, once implemented, there is no room for human error or non-compliance with an agreement. We are convinced of the value of group cooperation and decentralization.
Cardano will make it possible for the Paribus protocol to connect numerous assets across multiple blockchains while remaining chain-agnostic. The interoperability of Cardano removes barriers and makes it possible for value to move freely.

Check out these handles for more information about Paribus.
Discord: https://discord.io/paribus Discord Community Chat: https://t.me/paribus_io Medium: https://blog.paribus.io/https://blog.paribus.io/ Website: https://paribus.io Telegram Announcement: https://t.me/paribusannouncements