Parallel Finance has stopped supporting the NFT lending product, but still holds over 800,000 USD worth of NFTs on the platform and charges a 500 USD fee when users withdraw their assets.
Due to the lack of a supporting front-end interface, many users cannot withdraw NFTs themselves and have to pay fees to retrieve them. An expert has guided how to manually extract assets through Etherscan.
MAIN CONTENT
Parallel Finance stopped supporting NFT lending after a 6-month notice.
Over 800,000 USD worth of 'blue-chip' NFTs remains locked on the platform's contract.
Users are charged a 500 USD fee if they wish to withdraw NFTs due to the lack of a supporting interface.
When did Parallel Finance stop the NFT lending product and what are the consequences?
Parallel Finance has stopped supporting the NFT lending product after a 6-month notice period. However, hundreds of thousands of USD worth of NFTs remain locked in the platform's on-chain smart contract.
The product discontinuation prevents users from withdrawing assets through the official interface, causing significant difficulties for most customers who lack the technical skills to interact with the contract themselves.
Notably, the NFTs being held include many collections considered 'blue-chip', demonstrating that the assets ensure value and growth potential.
Why are users charged a 500 USD fee when they want to withdraw NFTs from Parallel Finance?
Since Parallel Finance no longer supports the front-end for the NFT lending product, users cannot directly withdraw their assets. The platform's management team has imposed a 500 USD fee to help users retrieve their locked NFTs.
This fee reflects the necessary technical and labor costs, while also warning participants about the risks of using a platform that has ceased official service.
Charging this fee is controversial but is also a common reality in DeFi projects when discontinuing products, especially for assets that cannot be withdrawn automatically.
How can users retrieve NFTs when support for the front-end is lost?
The founder of oSnipe, 0xQuit, shared a detailed guide on social platform X about how to manually obtain NFTs through Etherscan, a blockchain explorer tool.
By directly interacting with the smart contract through the Etherscan interface, users can withdraw NFTs without paying the 500 USD fee, if they have the appropriate knowledge and skills.
This move aims to assist the community in mitigating losses while being transparent about the amount of assets locked on the platform after operations cease.
"A large number of high-value NFTs are still locked on the platform, including 11 BAYC, 39 MAYC, and 2 Doodles, with a total current value of over 800,000 USD based on the current floor price."
- 0xQuit, founder of oSnipe, August 2023, X platform
Frequently asked questions
Has Parallel Finance officially stopped supporting the NFT lending product?
Yes, the platform has announced to discontinue the product after 6 months, in order to redirect services or restructure.
Why can't users withdraw NFTs themselves on Parallel Finance?
When there is no longer front-end support, the visual interface for withdrawing NFTs disappears, and only manual operations on the smart contract can be done.
Is the 500 USD fee for withdrawing NFTs reasonable?
This fee represents the technical costs from the Parallel team, but it puts financial pressure on users, especially when there are no alternative options.
How can I withdraw NFTs if I don't want to pay the fee?
Manual operations can be performed through Etherscan following expert guidance such as that from 0xQuit, requiring skills to interact with smart contracts.
Can locked NFTs on Parallel Finance be completely lost?
Currently, NFTs are still in the smart contract, not lost but not easily accessible without appropriate actions.
Source: https://tintucbitcoin.com/parallel-finance-thu-phi-rut-cham-500-usd/
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