``` ParaSpace to continue NFT lending as it rebrands to Parallel Finance - Coin Postman
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ParaSpace to continue NFT lending as it rebrands to Parallel Finance

Regardless of rebranding to Parallel Finance for a larger concentrate on the decentralized finance (DeFi) ecosystem, the nonfungible token (NFT) lending protocol ParaSpace will proceed to concentrate on its core product amid sector woes.

In a dialog with Cointelegraph, Yubo Ruan, founder and CEO of ParaSpace (now Parallel Finance), explains that the protocol makes use of a mixture of diversified liquidity swimming pools, dynamic loan-to-value ratios and price-discovery partnerships to mitigate the dangers related to excessive volatility, which may usually lead to an absence of bidders on the underlying asset.

“Regardless of the market downturn, we imagine NFT margin lending stays viable,” mentioned Ruan. “It serves a distinct segment but rising sector of collectors and traders in search of leverage of their investments.”

Through the previous 12 months, NFT buying and selling quantity has plunged by 99% from its peak in Might 2022, though there have been signs of stabilization with blue chip collections. “Within the close to future, we see the implementation of NFTs as digital passports that allow entry to each digital and real-world utilities,” Ruan commented. “Additionally, we’re wanting on the evolution of soulbound tokens that function non-transferable proofs of expertise, ability and popularity.”

Because the protocol rebrands to supply a larger number of DeFi companies, Ruan mentioned the 2 major focuses are liquid staking and Parallel L2. Together with the said goals of reaching quick transactions with low gasoline charges, Parallel L2 additionally incorporates zero-knowledge proofs and Arbitrum Orbi to optimize for safety and scalability. In the meantime, Ruan defined that the protocol is “exploring the probabilities of integrating liquid staking with NFT lending” to permit NFT holders to earn yields on their staked property.

“Customers obtain a tradable by-product token, representing their staked funding, which will be traded or used like different crypto tokens. This method addresses the everyday liquidity problem in staking, permitting customers to have interaction in different funding alternatives with out unstaking their property.”

Ruan based ParaSpace in 2022. Since then, the corporate has grown to a valuation of $500 million, with over 340,000 proclaimed customers. It reached a peak complete worth locked of $900 million in Might and subsequently merged with Parallel Finance in August.

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