The Parallel Protocol is expanding its reach and offerings, and it is now introducing paUSD on Ethereum Mainnet. This significant development allows users to access and borrow paUSD on Ethereum Mainnet, similar to how they do with PAR.
The decision to launch on Ethereum was discussed and voted on by the DAO in different stages, first by introducing the paUSD, then establishing its first collaterals and finally launching on Ethereum.
Understanding paUSD
paUSD is a stablecoin pegged to the US dollar, offering a decentralized and collateral-backed option in the decentralized finance (DeFi) space. Its launch on Ethereum Mainnet extends Parallel Protocol's influence, providing a secure and reliable way to transact and store value.
Borrowing paUSD on Ethereum Mainnet
Parallel Protocol's notable feature is its stablecoin borrowing system. Now with paUSD on Ethereum Mainnet, users can mint paUSD by depositing collateral into Vaults. Here's how:
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Vault Creation: Deposit collateral tokens into a Vault smart contract on Ethereum Mainnet, creating a new Vault.
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Borrowing Limit: The amount of paUSD you can borrow depends on the collateral in the Vault, which must maintain a Minimum Collateralization Ratio to ensure over-collateralization.
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Borrow paUSD: With adequate collateralization, users can borrow paUSD for various DeFi applications.
Diverse Collateral Options: Users can leverage a wide array of collateral types, including major tokens like wBTC, as well as "productive" assets such as stETH and wUSK from KUMA. These unique assets not only serve as collateral but also offer built-in yield, allowing users to borrow paUSD while still benefiting from the yield generated by their stETH or wUSK holdings. This diversity provides users with exceptional flexibility in their DeFi strategies, enabling them to maximize their returns and explore innovative borrowing options.
Borrow paUSD now on Parallel.
Advantages of paUSD on Ethereum Mainnet
Choosing paUSD on the Ethereum Mainnet offers multiple benefits:
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Enhanced Security: Ethereum Mainnet, being one of the most established blockchain networks, offers robust security protocols. This makes transactions and smart contract operations highly secure.
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Widespread Acceptance and Integration: Due to its popularity and long-standing presence, Ethereum Mainnet has a vast range of integrations and acceptance across various platforms and services in the DeFi ecosystem.
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Rich Ecosystem and Developer Support: Ethereum boasts a rich ecosystem with a large community of developers. This support leads to continuous improvements and innovations within the network.
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Network Maturity: Ethereum's maturity as a network means it has undergone extensive testing and development, leading to a more reliable and stable platform for DeFi activities.
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Collateral Options: Users can leverage various collateral types, including major tokens like wBTC, to borrow paUSD. This diversity provides users with flexibility in their DeFi strategies.
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Yield-generating paUSD pools available:
paUSD/wUSK pool on Bunni: Offers a solid 51% APY. Also available on Liquis for a boosted yield of 112% APY.
paUSD/wUSK/USDC pool on Balancer: Provides a competitive 15% APY. Can also be accessed on Aura for an elevated 36% APY.
The Future of DeFi with paUSD on Ethereum Mainnet
The introduction of paUSD on Ethereum Mainnet is a significant step for Parallel Protocol and the DeFi sector. It marks a convergence with the established and reliable Ethereum ecosystem, showcasing the maturation and diversification of DeFi offerings.
You can swap from any assets to paUSD on LlamaSwap.
In Conclusion
The introduction of paUSD on Ethereum Mainnet marks a pivotal moment, presenting new avenues for borrowing and engaging in transactions within a network renowned for its robustness and comprehensive ecosystem. This launch serves as a call to action for experienced DeFi enthusiasts and newcomers alike, inviting them to delve into the dynamic world of decentralized finance.
With paUSD now on Ethereum Mainnet, users gain access to a platform that is not only established and widely recognized but also rich in opportunities and integrations within the broader DeFi landscape. It underscores a significant advancement in the accessibility and functionality of stablecoins, further enriching the DeFi experience for all.
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