Hello everyone, today I will introduce to you an airdrop project called ParaSpace.

 

1. Introduction to ParaSpace

ParaSpace (official website para.space) is an NFT lending protocol, incubated by the Parallel Finance team. Parallel Finance has successively received investment from well-known VCs such as Polychain, Coinbase, StarkWare and Sequoia. ParaSpace, as a project incubated by Parallel Finance, is also a highly regarded project. focus on. From the Twitter homepage, we can see that Paraller Finance directly puts ParaSpace’s official website in the introduction, which shows that its status is relatively high.



The track that ParaSpace is in is the NFT lending protocol. Everyone is familiar with lending protocols, such as AAVE and Compound, which have already reached the top. The difference from the NFT lending protocol is the collateral. AAVE's collateral is generally homogeneous tokens such as ETH and USDT, while the collateral for NFT lending is mainly blue-chip NFT, such as monkeys worth dozens of ETH. ParaSpace's core business is NFT lending, and its benchmark product is BendDAO. Currently, BendDAO is the leader in this field, with a total TVL of more than 200 million US dollars. ParaSpace is catching up from behind, and its current TVL has reached 180 million US dollars. In addition to NFT lending, ParaSpace’s APE automatic re-investment, NFT credit purchase and other products have also attracted a large number of users.

 

2. Review of ParaSpace being stolen

But despite ParaSpace’s current TVL being so high, just last month, on March 17, ParaSpace suffered a hacker attack and almost succeeded. Fortunately, the white hat team BlockSec discovered the hacker’s attack in time. . The hacker attack code at that time had actually been deployed successfully, but because the hacker was not willing to pay the high gas fee, the two attacks each consumed about 1 ETH, but neither of them succeeded. After discovering it, BlockSec copied the hacker's attack path and consumed With 1.7 ETH of gas, 2,900 ETH were saved.

Generally speaking, if a DeFi protocol is attacked, no matter whether the attack is successful or not, basically few users dare to use this protocol anymore, especially for a new protocol that is only a few months old. However, after the attack, ParaSpace went through a series of operations, including asking industry security experts to review and adding security locks, and was able to turn the attack around. When it was attacked, ParaSpace’s TVL was US$100 million. Less than a month after the attack, the TVL almost doubled. This is indeed a bit unexpected.

The growth of TVL is partly due to ParaSpace's proper handling of the theft crisis, which made people trust ParaSpace's security for the second time. It also airdropped a special NFT to all pledgers. On the other hand, it is mainly the incentive plan of ParaSpace. It is officially announced that behaviors and activities in ParaSpace before June 30 will be rewarded with 3 times points. These points can be directly issued as Token rewards at a certain proportion when the tokens are issued. Therefore, A large amount of new funds are currently being added to obtain airdrop rewards.

  

3. Why is it worth interacting?

Now it is very clear that ParaSpace is a public airdrop. Since BendDAO has already issued coins, we can refer to it. According to Coingecko’s data, BEND’s current circulating market value is 8 million US dollars and the total market value is 150 million. If ParaSpace airdrops If so, there is a chance to reach a circulating market value of 5 million. Another point is that Parallel Finance has investments from several well-known VCs, and there is an unwritten rule in the B circle. Investment by large institutions means issuing coins and airdrops. Therefore, there must be rewards for interacting with ParaSpace now, but they are just rewards. I don’t know how much.

https://docs.google.com/document/d/1qRFXS_voB_MslQ4D1kEeONI7nxwTDxtF6okMpFhckJs/edit. These are the details of the incentive plan released by ParaSpace, let’s take a look. It can be known from the details that ParaSpace’s incentive activities are mainly concentrated in three categories, namely mortgage and lending of ERC-20 or ERC-721 assets, pledge of APE, and credit purchase.

The interaction is relatively simple. Operate on the Ethereum main network, create a Little Fox wallet and recharge the wallet with NFT or tokens that need to be pledged. Those with a DeFi foundation can play with borrowing and lending.

 

4. Interaction strategy

To increase your ParaSpace points, simply put, you need to use mortgages and loans to increase your points. I think there are several strategies, and I will list them for your reference.

The first one: If you hold NFT, you can go to ParaSpace to pledge, and at the same time, you can borrow ETH and other assets to earn points, but you need to estimate whether the interest cost you will pay can cover the value of the airdropped tokens. Of course, if you hold three NFTs that can be matched with APE, you can go to the matching pool for staking.

Second option: If you don’t have NFT, you can pledge your ERC-20 Token, such as ETH, USDT, USDC, wBTC, Blur, etc. At the same time, you can lend other coins. Of course, during this process, you need to pay attention to the price fluctuations of the coins to avoid liquidation. If you feel that the interest cost can be covered by the value of the airdrop tokens, you can mortgage USDT and then borrow USDC, which can maximize fund utilization while minimizing liquidation risks.

The third type: If you know how to do contract hedging, you can decentralize the exchange for APE hedging, and then put the APE on the chain for mortgage. It should be noted that APE hedging requires interest costs. The income calculated based on the current pledge interest rate is higher than the hedging cost. This requires a certain contract basis and you can try it yourself.

 

5. Risk warning

Finally, a risk warning. After all, ParaSpace belongs to the DeFi protocol, and DeFi protocols are currently the focus of hackers. Hacker attacks on different projects also happen from time to time, and just last month there was an attack on ParaSpace. If the white hat team had not discovered it in time, there would have been The loss of assets is as high as millions of dollars, so it is risky to go blind mining in ParaSpace now. Of course, it is precisely for this reason that some people will be prevented from participating and involution will be reduced. Taken together, I think you can use ParaSpace to pledge funds that you can afford to lose, and at the same time lend out certain assets and pay a certain interest cost, so as to reduce the amount of losses in extreme situations.