Paxo Finance as a DeFi Lending and Borrowing Protocol.

The CRYPTO CURRENCY industry has grown to be worth $3 trillion. There have been numerous innovations in the cryptocurrency space over the last decade. The decentralized finance (DeFi) space is one of the most recent innovations.

Within the cryptocurrency space, DeFi is one of the fastest-growing sectors. It provides a wide range of services to cryptocurrency investors and other market participants. This post will focus on one aspect of DeFi, which is lending, due to its importance.

What exactly is DeFi

Decentralized finance is a simple definition of DeFi. This is a financial application ecosystem based on blockchain technology. Unlike the traditional financial ecosystem, the DeFi space is devoid of any central authority.

Instead, DeFi uses a peer-to-peer network to create decentralized applications that allow people to connect and manage their assets regardless of where they are or what status they are in. DeFi aims to ensure that people all over the world have access to open-source, transparent, and permissionless financial services.

Smart contracts are the foundation of the decentralized finance ecosystem. Smart contracts are self-executing and do not require the involvement of a third party. DeFi was founded on the Ethereum platform. As a result, it’s no surprise that the majority of DeFi protocols are based on the Ethereum blockchain.

DeFi lending is enabled by lending platforms or protocols. These platforms offer trustless cryptocurrency loans by allowing holders to stake their coins in DeFi lending platforms.

On the DeFi platform, a borrower can take out a loan, which allows the lender to earn interest once the loan is repaid. From start to finish, the lending process is completed without the use of intermediaries.

A coin holder uses a smart contract to send the tokens they want to lend into a pool. When coins are sent to a smart contract, they become available for borrowing by other users. After that, the smart contract generates tokens (usually the platform’s native token), which are distributed to the lender automatically. In addition to the underlying assets that were sent to the smart contract, the tokens can be redeemed at a later time.
Almost all loans made with native tokens are backed by collateral. Users who want to borrow money will be required to provide a guarantee. The guarantee in the DeFi space, unlike the centralized financial system, is in the form of cryptocurrencies that are worth more than the loan itself.
On paper, this idea may appear absurd because the borrower could generate the funds by selling their assets in the first place. DeFi borrowing, on the other hand, makes sense for a variety of reasons.

Introducing Paxo Finance

Paxo Finance is an on-chain permissionless investment loan protocol. PAXO opens up borrowing in the MetaFi space that allows users to take loans upto 500% of their equity value to buy digital assets.

CORE FEATURES

🌟 Imagine buying token for staking or land in Metaverse with 20% upfront payment and 80% borrowed capital from PAXO. Purchased asset remains within the protocol.

🌟Permissionless and Trustless architecture. No credit score is required.

🌟 Protocol is audited. Live on Polygon Testnet.

Assets for Lending
A ERC-20 token balance (“pToken”) represents assets supplied to a market, entitling the owner to an increasing amount of the underlying asset. Interest accrues in the money market, which is a function of borrowing demand. The underlying asset can be redeemed for pTokens. Earning interest in this arrangement is as simple as holding an ERC-20 pToken.

Use Cases
Investment loans in centralized exchanges are exorbitantly expensive, with rates as high as 26 percent in some cases, necessitating the need for a decentralized solution to access investment loans. The PAXO protocol can be used by DeFi protocols, machines, and exchanges with token balances to earn rewards and incremental returns by “sweeping” balances. Lenders receive PAXO tokens in exchange for providing liquidity to the protocol.

Borrowing Assets

PAXO allows users to securely and frictionlessly borrow and invest in the cryptocurrency market, using any listed token as equity. Unlike over-collateralized loan protocols, borrowing an investment loan from PAXO requires a user to specify a desired asset for investment. Borrowing and investment is instant and predictable. there are no negotiation terms, maturity dates, or funding periods.

Each money market has a floating interest rate set by fluctuating market forces. This determines the borrowing cost for each asset. Invested assets are locked within the protocol. In the later stage, staking and other utilization of invested assets can be introduced to reduce loan interest rates.

Token Utility ($PAXO)

🌟 Platform Governance

🌟Staking

🌟 Undercollateralised loan will be available in PAXO-<Token> pair.

Roadmap

🌟 Multipool Architecture.

🌟 Staking with the invested assets within PAXO.

🌟 NFT Liquidation marketplace.

🌟Integrated Single Pools for NFT Assets.

Summary

🌟 Paxo creates assets backed loan for Ethereum Assets

🌟 Isolated multiple pool will have different interest rates based on and demand. When demand to borrow an asset grows, or when supply is removed , interest rates increase, incentivizing additional liquidity.

🌟 Users can supply tokens to a money market to earn interest in a secure and decentralized way.

Launch

IDO around 25 april.

Partners and Investors

Polygon, Zebpay, Zignaly, Dfyn Network, XinFin XDC Hybrid Blockchain Network (XDC), UniLend Finance, ChainLink, Quill Audit

🌟Connect with us to get the latest update

✅ Telegram : https://t.me/paxofinance

✅ Twitter : https://twitter.com/paxofinance

✅ Website : https://www.paxo.finance

✅ Testnet : https://polygontestnet.paxo.finance/

✅ Whitepaper : https://docsend.com/view/kyczhvpr5pshr8c4