ParaSpace 2.0 will pave the way for the future of lending with the following:
- Brand new features: giving everyone access to universal liquidity for their assets.
- Decentralization: Creating the next generation of loans together with the community.
Version 2.0 marks a new generation of lenders, with new features rolling out. Essentially, this upgrade will strengthen the web3 community through a simple yet powerful platform.
2.0 marks a new generation of loans, with new features already in development.
Essentially, this upgrade will strengthen the web3 community through a simple yet powerful platform.
We’re excited to share more as ParaSpace 2.0 rolls out.
— ParaSpace (@ParaSpace_NFT) July 13, 2023
ParaSpace is a Lending Protocol platform that allows users to borrow and lend against NFTs and tokens. NFT prices are provided by NFT Price Oracle and are based on the bottom price of the NFT collection from OpenSea and LarvaLabs (for CryptoPunks).
Main objectives of the operation on the ParaSpace platform:
- Borrower (Borrower): Deposit NFT on the platform as collateral to borrow a corresponding amount and receive nToken (NFT standard ERC 721) representing the mortgaged NFT. In addition, Borrower can also use other collateral assets such as tokens and LP tokens on Uniswap V3, vToken (mint on NFCX), Aave’s aTokens and Compound’s cTokens.
- Lender (Lender): send assets (tokens) to the platform to receive interest.
Recently, however, the team developing this NFT lending protocol had an internal dispute when it asked CEO Yubo Ruan to resign, accusing Yubo Ruan of embezzling the 2,909 ETH recovered from the March hack.
In the opposite direction, Ruan confirmed that the above article was fabricated. He alleged that two former advisers, Thomas Schmidt and Jay Yao, now the current COO and CBO, are illegally gaining control of the protocol’s multisig and Twitter accounts. Ruan claimed that after receiving the money from BlockSec, “myself, Thomas, Jay and other key parties” planned the refinancing in stages.
Contributors at @ParaSpace_NFT,
I am writing to notify you of an urgent matter regarding our company. Two former advisers, Thomas Schmidt and Jay Yao, illegally gained control of one of the protocol’s multisig and social media accounts. They did that by contacting key…
— Yubo Ruan (@yuboruan) May 10, 2023
ParaSpace was hacked in the afternoon of March 17, 2023, but managed to stop the hack in time. At the time, BlockSec helped ParaSpace recover 2,900 ETH ($5 million) just before it risked losing everything. On chain inspection, the project found that about 50% of the funds were not repaid, creating a hole in the protocol’s coffers. From there, internal disputes broke out.
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