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About a month ago, our CEO Deniz was featured in a Twitter space with Bullish Dumpling and her community. Ahead of our MVP launch, we thought we\u2019d remind people of some of the key points Deniz revealed about the plans and progress of Paribus.<\/p>\n
Many of the questions fired at him related to the NFT aspect of Paribus and how we\u2019d be able to provide reliable data in such a volatile market. Deniz\u2019s answers revealed not only our systematic and research-based approach to the subject but also the collaborative nature of Paribus.<\/p>\n
In relation to our proprietary NFT valuation algorithm, Deniz said, \u201cIt won\u2019t be open-sourced, so you won\u2019t be able to see the source code\u201d, adding, \u201cWe\u2019re trying to build a consortium of NFT valuation models right now. So we\u2019re in discussions with another NFT valuation product\u2026and we\u2019re working with a higher education institution who are working on AI models that give NFT valuations. We want to create this consortium of NFT valuation standards, working together to share data and make our models better. We will also have some cross-reference checking between our models and our external API partner models as well.\u201d<\/p>\n
Another area that piqued the interest of Bullish Dumpling\u2019s community was the financial aspect of Paribus. We understand that the present market conditions in the cryptocurrency space are causing some people to question the future of some projects. Deniz\u2019s explanations about the financial structure of Paribus should help reassure our community that we can easily outlast the current market cycle.<\/p>\n
He said, \u201cIn terms of the reserve liquidity, we don\u2019t have a particular set liquidity. We take fees from every loan we generate and those fees go back into a treasury vault. That treasury vault can be used as a backup to make sure the system is always cash flow positive. We\u2019ve been trading live since September 2021 and we\u2019ve raised roughly $2 million. With that, we have about a two-year runway at our current burn rate, so at the moment we\u2019re good. We don\u2019t need any financial support at the moment anymore, so we\u2019re on track obviously on that end.\u201d<\/p>\n
Some projects need to keep selling their native tokens and raising capital to fund ongoing development. We do not. As a result of our successful IDO and further support and investment from CFund, we\u2019re secure for at least the next two years. Added to that, when the MVP goes live in the next few weeks we\u2019ll be able to build up our treasury vault with fees accrued from the platform\u2019s activities.<\/p>\n
As our community knows, we\u2019re focused not just on developing the platform but also on developing the community and rewarding their incredible support and loyalty. That was the reason for launching our highly successful staking program, of which two pools are still running and delivering impressive returns to stakers. We\u2019re also focused on how to incentivize TVL in the short to long-term.<\/p>\n
As Deniz detailed, \u201cIn terms of total value locked we have plans to run certain reward programs and booster programs to get people in, in the short-term. In the long-term, we want to have a more sustainable model where we may use a variance of VE tokens, but it\u2019s still under discussion.\u201d<\/p>\n
He also explained some of the benefits we\u2019re looking to offer our native token holders in the future, \u201cPBX will serve as a token to give you access to features such as lower interest rates, lower repayments, share of revenue platform generates (you\u2019d have to be stake for this), and governance, of course. In the future, we plan to have additional features as the NFT side comes in.\u201d<\/p>\n
There were also some questions about potential bias occurring in the platform, whether that be focussing too heavily on one or two blue-chip NFT projects or bias that usually occurs in legacy finance.<\/p>\n
Deniz explained how we\u2019re approaching training and optimizing our valuation algorithm to avoid one of these potential problems, \u201cThe tests will run through different types of NFTs, it won\u2019t just be built for Grade-A projects. We will feed it raw data and we\u2019ll see what comes out on the other end and make optimisation tweaks where necessary.\u201d<\/p>\n
He went on to explain how DeFi protocols help to overcome human bias in terms of allowing access to financial tools to everyone, \u201cOur model is focused on the underlying value and quantifiable data points that we have identified. You may see bias with traditional finance because it connects to many other systems such as credit scores, and personal identity checks.\u201d, adding, \u201cGiven that we\u2019re a crypto company and we don\u2019t know anything about the individual that\u2019s trying to take out a loan, aside from their wallet address, there really isn\u2019t data to build a bias on.\u201d<\/p>\n
Throughout the space Deniz fielded questions covering all aspects of Paribus in great detail. For those who missed it, we highly recommend listening back on Bullish Dumpling\u2019s YouTube channel:\u00a0https:\/\/www.youtube.com\/watch?v=CA-5rXgFyOg<\/a><\/p>\n