Paribus is a decentralized, cross-chain protocol designed to facilitate value extraction from traditional and non-traditional crypto assets, including digital assets, NFTs, and liquidity positions. ^[1]

Overview

Paribus, founded in 2020 by Deniz Dalkilic, Wilson Davis, and Simon Kruse, is a decentralized, cross-chain lending and borrowing protocol that aims to unlock value from unconventional crypto assets, including NFTs, liquidity positions, real-world assets, and synthetic assets. It uses an AI-driven NFT valuation oracle to facilitate scalable loans through liquidity pools rather than peer-to-peer matching.

The protocol is designed to be interoperable and blockchain-agnostic, enabling interaction with assets across ecosystems. It seeks to explore the potential of digitizable assets to expand their use within decentralized finance. ^{[1] [2] [3] [4] [5] [6]}

Features

Paribus aims to deliver decentralized financial solutions focused on improving liquidity and creating opportunities across multiple asset categories. Its interoperable protocol seeks to facilitate access to decentralized finance (DeFi) markets for assets including non-fungible tokens (NFTs), real-world assets (RWAs), liquidity provider (LP) tokens, and established cryptocurrencies like BTC, ETH, and USDC. ^{[7] [8] [9]}

NFT Collateralization

The platform aims to provide NFT owners with the ability to access liquidity through collateralized loans, enabling them to maintain ownership of their digital assets while utilizing the loan for other purposes. ^{[7] [8] [9]}

Real-World Assets

Paribus aims to address liquidity challenges in the DeFi market for tokenized real-world assets (RWAs), such as state bonds, tokenized real estate, and vaulted assets. The platform seeks to enable users to utilize these assets as collateral while minimizing the risk of liquidation. ^{[7] [8] [9]}

LP Token Utility

Paribus aims to incorporate LP tokens as collateral, providing functionalities such as self-repaying loans, where the returns generated contribute to repaying borrowed amounts. This approach seeks to enhance the utility of LP holdings. ^{[7] [8] [9]}

Borrowing and Lending

The protocol aims to facilitate borrowing and lending using pTokens, which accumulate interest through an exchange rate mechanism. This approach is designed to enable users to earn passive returns while retaining their asset holdings. ^{[7] [8] [9]}

Staking

The protocol aims to provide staking opportunities for PBX token holders, allowing participants to lock tokens for specified periods to earn rewards. The staking mechanism is structured to offer different levels of annual percentage yield (APY) based on the duration of the lock period and the size of the pool. ^{[7] [8] [9]}

Architecture

Paribus's architecture is structured around smart contracts that aim to provide functionality, security, and efficiency. The Controller contract facilitates interactions and oversees asset whitelisting based on liquidity, collateral factors, and oracle price feeds. Oracles supply decentralized price data, while the Liquidation Manager contract addresses loans when collateral values fall below required levels.

The protocol utilizes pTokens to represent user balances, enabling interest accrual and collateralization. Interest rates are adjusted through a dedicated contract based on predefined strategies.

Paribus incorporates LayerZero and Everclear for cross-chain communication to support both EVM and non-EVM blockchains. It aims to ensure accurate asset pricing through custom and decentralized oracles. Governance plans propose transitioning protocol control to PBX token holders as part of its progression toward becoming a DAO. ^[7]

Tokenomics

Paribus Token ($PBX)

PBX is the governance token of Paribus, enabling holders to propose and vote on protocol decisions. It aims to align the interests of stakeholders and the protocol, while also providing holders with a share of the protocol's fees based on their stake size. ^[10]

Allocation

Paribus has a total supply of 10 billion PBX tokens, distributed as follows:

• Sale: 4 billion PBX (40%)
• Ecosystem: 3.3 billion PBX (33%)
• Foundation: 1.5 billion PBX (15%)
• Strategic/Advisory: 700 million PBX (7%)
• Liquidity Provisioning: 500 million PBX (5%) ^[11]

Governance

The Paribus protocol aims to be governed by PBX token holders through three components: the PBX token, the Governor Delegator module, and Timelock. These components enable the community to propose, vote on, and implement changes, such as adjusting system parameters or introducing new features. PBX token holders can stake their tokens to gain voting rights, with proposals requiring a minimum of 10 million voting power to be submitted. Voting lasts 5 days, and if a proposal receives a majority and at least 100 million votes, it is queued in Timelock and can be implemented after 3 days. Changes to the protocol are set to take effect after a minimum of 10 days. ^[12]