ParaSpace to Continue NFT Lending as it Rebrands to Parallel Finance

Despite Rebranding, ParaSpace Stays Focused on NFT Lending

ParaSpace, the nonfungible token (NFT) lending protocol, is rebranding to Parallel Finance with a renewed emphasis on the decentralized finance (DeFi) ecosystem. However, the company will continue to prioritize its core product amid challenges in the sector.

NFT Margin Lending Remains Viable

In an interview with Cointelegraph, Yubo Ruan, founder and CEO of ParaSpace (now Parallel Finance), expressed confidence in the viability of NFT margin lending. Ruan highlighted that despite the market downturn, there is a niche yet growing sector of collectors and investors seeking leverage in their NFT investments.

Future Outlook for NFTs

Ruan believes that in the near future, NFTs will serve as digital passports, granting access to both virtual and real-world utilities. Additionally, Ruan mentioned the potential for the evolution of soulbound tokens, which act as non-transferable proofs of experience, skill, and reputation.

Parallel Finance Focuses on Liquid Staking and Parallel L2

As Parallel Finance expands its services, the company will prioritize liquid staking and Parallel L2. These initiatives aim to offer fast transactions with low gas fees through the integration of zero-knowledge proofs and Arbitrum Orbi for enhanced security and scalability.

Exploring the Integration of Liquid Staking with NFT Lending

Parallel Finance is exploring the integration of liquid staking with NFT lending to enable NFT holders to earn yield on their staked assets. Users will receive a tradable derivative token representing their staked investment, allowing them to engage in other investment opportunities without un-staking their assets.

Achievements and Growth

ParaSpace, founded in 2022, has witnessed remarkable growth, with a valuation of $500 million and over 340,000 users. The platform reached a peak total value locked of $900 million in May before merging with Parallel Finance in August.