ParaSpace Introduces Cross-Margin Lending Protocol for NFTs and Fungible Tokens

ParaSpace’s cross-margin lending protocol enables a peer-to-pool lending system to boost liquidity and capital efficiency.
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Quick take:

  • ParaSpace is building a lending protocol that will allow web3 lenders to leverage liquidity from both NFTs and fungible tokens.
  • The company is backed by some of the leading VCs and web3 investment companies including Sequoia Capital, Coinbase Ventures, and Founders Fund.
  • The company is trying to fix a gap that emerged recently amid dwindling liquidity in NFT lending marketplaces.

ParaSpace is developing a ‘first-of-its-kind’ lending protocol that leverages a peer-to-pool system to boost liquidity on non-fungible token lending platforms. The platform allows lenders and borrowers to access liquidity pools in both NFTs and fungible tokens.

ParaSpace claims its lending solution fixes a major gap in the web3 lending market that emerged amid the declining liquidity in NFT lending platforms.

ParaSpace was founded by Yubo Ruan as an NFT lending and marketplace protocol in 2022 according to the company’s LinkedIn page. The fully decentralised and permissionless lending protocol is built on the Ethereum blockchain— it offers among other features, margin staking, auction loans, and staking derivatives.

ParaSpace is backed by some of the leading venture capital firms and web3 investment companies including Sequoia Capital, Coinbase Ventures, Polychain Capital, Pantera, Lightspeed and Founders Fund.

The company’s cross-margin lending protocol enables users and NFT holders can collateralize multiple assets into one portfolio, allowing them to lend and borrow against their holdings and hedge against risk exposure.

Commenting on the new product launch, Ruan, founder and CEO of ParaSpace said: “We believe in a future where NFT assets proliferate with different kinds of utility, applications, and especially the connection to real-world assets. Our vision is to create a decentralized cross-margin lending protocol with support for a wide variety of both fungible and non-fungible assets extending into the real world.”

Ruan believes that for NFT lending to reach the levels achieved by traditional crypto le lending platforms, users need to have the flexibility to hedge against risk and choose which assets they can borrow against.

The platform already supports a variety of fungible tokens including BTC, ETH, DAI, USDC, and APE, as well as, numerous NFT collections featuring blue-chip NFTs.

The company plans to expand its ecosystem with a cross-chain lending protocol for Ethereum Virtual Machine (EVM)-compatible blockchains.


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