Dear Governance Forum
Now that the full security audit came back with a high score of 94/100 we are confident to move forward with launching the protocol on the Ethereum Mainnet in preparation for the NFT lending feature going live!
The proposal is to launch on Mainnet Ethereum alongside its existing Arbitrum version, introducing the ETH market alongside the first deployment of the USDC Market for supplying and borrowing. We seek community support through governance voting to approve the launch.
To bootstrap liquidity for the available markets and prepare for the whitelisting of NFTs, we plan to implement an incentive program. This initiative aims to increase liquidity, ensuring a seamless experience for upcoming NFT users who intend to borrow against their NFTs as collateral. Given the significant value of some collections, with values exceeding 17 ETH, we will start with a conservative Loan-to-Value (LTV) ratio, gradually increasing it as the protocol’s Total Value Locked (TVL) grows, prioritizing the protection of lenders.
Integration with Swing, our latest partner, will facilitate a seamless user experience for supplying and borrowing across both the Arbitrum and Ethereum chains.
Proposal Details:
Mainnet Ethereum Launch: Paribus aims to expand its presence by launching on Mainnet Ethereum in addition to its existing Arbitrum version. This strategic move will enhance accessibility and user adoption, catering to a broader audience.
ETH Market: With the Mainnet launch, Paribus will introduce the ETH market, allowing users to supply and borrow ETH-based assets within the platform.
Deployment of USDC Market: The first deployment of the USDC Market will allow users to supply and borrow USDC tokens, enhancing liquidity options within the platform.
Community Governance Voting: Paribus stays true to its decentralized ethos by seeking community approval through governance voting for the Mainnet launch.
This inclusive approach ensures alignment with user preferences, fostering transparency and collective decision-making.
Incentive Program for Liquidity Bootstrapping: Paribus plans to implement an incentive program to bootstrap liquidity for the newly available markets. By attracting liquidity providers and borrowers, this initiative aims to kickstart activity within the ecosystem, laying the foundation for sustainable growth.
Preparation for NFT Whitelisting: The liquidity raised through the incentive program will prepare Paribus for the whitelisting of NFTs by the community through governance voting. This step paves the way for the integration of NFT-backed borrowing, catering to the evolving needs of users in the decentralized finance space.
Gradual Increase in LTV: Given the high value of certain NFT collections, Paribus will adopt a conservative Loan-to-Value (LTV) ratio initially to safeguard lenders’ interests. As the platform’s Total Value Locked (TVL) grows, the LTV ratio will be adjusted incrementally, balancing risk and reward for all participants.
Integration with Swing: Paribus’s partnership with Swing enables seamless asset movement between the Arbitrum and Ethereum chains, enhancing interoperability and user experience. This integration streamlines the process of supplying and borrowing assets, providing users with a frictionless cross-chain experience.
Proposal Summary:
Paribus’s Mainnet launch on Ethereum, alongside the introduction of the NFT Lending, signifies a significant milestone in the platform’s journey. By seeking community support through governance voting, implementing an incentive program for liquidity bootstrapping, and preparing for NFT whitelisting, Paribus demonstrates its commitment to user-centric growth and innovation in the decentralized finance landscape. Integration with Swing further enhances the platform’s functionality, offering users a seamless cross-chain experience. Together, these initiatives position Paribus for success in serving the diverse needs of its growing user base.
We look forward to your support and participation in this exciting phase of Paribus’s journey. With kind regards,
The Paribus team.
