Home Altcoins News New World of Liquidity and TVL to the Solana (SOL) DeFi Ecosystem

New World of Liquidity and TVL to the Solana (SOL) DeFi Ecosystem

solana defi ecosystem

Rafi Ox expressed:  A thread on Parrot Go Party Parrot, a project I believe could bring a whole new world of liquidity and TVL to the Solana DeFi ecosystem, thanks to its PAI stablecoin and its ingenious solution for bridging liquidity from Ethereum to Solana.

On Parrot, much like on MakerDAO, users will be able to deposit different assets as collateral (like SOL, ETH, BTC, stables) to mint an over collateralized stablecoin PAI (Parrot’s DAI) on Solana. Up till now, nothing new right? But here comes the fun, mind-blowing part.

Parrot will permit Ethereum DeFi assets such as Sushi & Curve LP tokens, Aave and Compound interest bearing tokens, etc to be used as collateral to mint PAI on Solana. This means users won’t have to choose between yield farming on ETH or on Solana. They’ll be able to do both.

Knowing how much bigger the Ethereum DeFi Ecosystem is compared to Solana’s, the influx of liquidity this could bring to Solana could be huge and PAI could quickly become an integral part of the Solana DeFi landscape, possibly the reference Solana-native stable coin.

One evidence for this is that even before the full-fledged platform launch, both Mercurial Fi

and Saber HQ, the two main stable asset exchange platforms being built on Solana, have already announced they will integrate PAI.

Parrot’s list of investors, headlined by Alameda Research, and their recent $5M fundraise is another sign that the project is backed by heavy weights.

Once PAI is established and the protocol has enough liquidity, Parrot will evolve into a broader lending market, and finally into a vAMM margin trading protocol, using PAI as its main unit of account. So Parrot is gearing up to become a full-fledged DeFi hub for Solana.

And what about Parrot’s PRT token? PRT holders will earn a share of all the protocol fees, including PAI stability fees, liquidation penalties, lending market borrowing fees, trading fees on the vAMM.

And much like with CVR / VeCRV, PRT holders may also choose to lock their PRT to receive gPRT governance tokens in return, which will also entitle them to a protocol incentives boost (such as the boosted LP rewards on Curve for veCRV holders)

The Platform is live in MVP mode on partyparrot.finance, where each user can mint up to 100 PAI using other stables as collateral, with the global amount of PAI limited to $100k. Other collateral assets will be included as soon as price feed oracles are in place.

And this is pure speculation on my part, but the latest article mentions an “IDO with PAI” for PRT. Maybe all holders of PAI within the current $100k limit will be able to participate in the IDO? Or a retroactive airdrop? Idk, but I’d mint my $100 of PAI just in case 😉

I’d also keep an eye out for yield farming opportunities, as 35% of the PRT supply will be used as protocol incentives. I expect these to include incentives for minting PAI, for providing liquidity on PAI stable coin pairs and for providing liquidity on PRT pairs.

And of course don’t forget the main value prop of the protocol: bridge your Ethereum based LP tokens and ibTKNs to Solana, mint PAI, and use PAI to buy other assets and seek even more yield. That’s more than enough to get me interested.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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