Missed the Blur airdrop, why not learn about the key NFT projects that have not yet issued tokens?
If you think NFT is a track that will inevitably explode in Web3, these articles are a must-read.
1. What is Para Space?
Para Space is an NFT lending protocol where users can pledge blue-chip NFTs on the platform and borrow money.
Competitors: BendDAO, JPEG'd
2. Para Space Team Information
Para Space was incubated by Para Labs, and once worked on Parallel Financei in the Polkadot ecosystem. Its TVL is still 287m, which means it has successful project experience. The official website contains information about the 9-member team and their social media channels (see picture)
3. Para Space Investment Lineup
There are many well-known investment institutions behind Para Space and Para Labs, including Sequoia Capital, Coinbase Ventures, Polychain Capital, Lightspeed, etc.
4. Current Status of the Platform
At present, Para Space is operating very well👍
There are 1,559 blue chip NFT deposits in it
The assets on the platform reached 103m USD (including ERC20 and ERC721)
The platform has been inspected by 9 auditing agencies
Based on the above points, in just a few weeks, Para Space's market position has grown dramatically. According to DefiLlama's statistics, Para Space is already the second in the industry, surpassing JPEG'd by 2.7 times.
5. Introduction to basic functions
Para Space is primarily an NFT lending protocol, and whether you are an NFT holder or not, there are ways for you to participate.
NFT users:
Deposit Bluechip NFT
Exposure to ERC20 tokens (ETH/APE/USDC)
Have more available funds👍
Non-NFT users:
Deposit ERC20 tokens (ETH/APE/USDC)
Enjoy interest 😎
6. Advanced Function: Ape Staking
Para Space cooperated with Yuga Labs to launch the $APE mining function. Basically anyone can participate in mining through Para Space!
If you don’t have BAYC, deposit $APE and get 140% APR;
If you own BAYC, deposit $APE and get 237%;
Even NFT holders can get 90% APR risk-free without depositing $APE;
BendDAO also provides similar services, using the Peer2Peer mechanism; Para Space provides both Peer2Peer and Peer2Pool for users to choose from;
The platform has an automatic compounding function built into it, providing a higher APR;
7. Advanced Function: Buy NFT with Credit
Basically this function has two uses:
You can deposit blue chip NFTs as collateral to buy cheap NFTs on Para, which is equivalent to Para lending you money to buy the next NFT;
If you want to buy your first blue-chip NFT, you can buy it directly on Para. You only need to pay the down payment and pay the rest of the money back slowly.
On Para, you only need 8 ETH to buy MAYC, and the floor price is currently 15 ETH.
8. Advanced Features: Uniswap V3 LP
When users provide liquidity on Uniswap V3, they will receive Lp tokens, which are actually NFTs. On Para Space, you can pledge LP tokens to borrow money, which is a feature that competitors do not have! It is worth noting that their liquidation mechanism is quite special.
Other platforms are all about a single NFT. Once it becomes unhealthy, a single NFT will be liquidated.
Para Space allows users to package NFTs to avoid liquidation as much as possible
Under this mechanism, if you want to keep your beloved blue-chip NFT, you can add Uni’s LP to increase the collateral~
9. Future advanced functions: shorting NFT
The track of NFT contract exchange is still unclear. Currently, there is no good place in the market to short a certain NFT project. ParaSpace plans to do it in the future!
Simple explanation: Fragmented NFT allows traders to sell high and buy low, thus achieving short selling (see the picture for the specific principle)
10. Personal Thoughts
Para Space is good, but it will take time for the next bull market to really explode, so everyone needs to be patient. The reason is that the NFTfi point market is currently too small, market education is not up to standard, and the bear market leverage trend is not popular.
To add some data, the number of users of the leading BendDAO is only about 10k, the cake is too small to explode💥
If Para Space wants to truly defeat BendDAO, it needs to open up new markets and find blue ocean markets! Most of the old blue chips such as BAYC/CryptoPunks have been occupied by BendDAO and are in a locked position. The holders of blue chip NFTs need to repay their debts before they can transfer to ParaSpace, which is costly and highly unlikely.
Therefore, I think Para Space should strive for the support of new blue chips, including Azuki, etc., so that it can have a chance to defeat BendDAO in TVL.
Small discovery: Azuki’s loan limit in Para is 50%, but only 30% in BendDAO
It has to be said that the prospects of the NFT lending track are getting brighter and brighter
