Announcing Parrot On Solana

Parrot has announced the launch of its protocol on the Solana blockchain. The goal of this new protocol is to make value locked in Decentralized Finance (DeFi) systems accessible - or make things “liquid again”.

By
Ifeanyi Egede
on
May 5, 2021
Category:
Breaking News

Parrot Protocol Launches on Solana

Parrot has announced that its protocol will be launched on the Solana blockchain. The team’s objective is to solve the problem of inaccessibility to value locked in DeFi systems. Examples of their services include a margin trading virtual auto market maker, a non-custodial lending market, and a stablecoin (called PAI, symbolized as $prt). Parrot is an LP token-collateralized liquidity and lending network that solves the problem of inaccessibility to value locked in DeFi systems. The Devnet testing for the first available product of the protocol has been released. It is called the PAI stablecoin and it is powered by Solana. The PAI stablecoin allows greater capital efficiency because holders can participate in new yield farms on Solana without stopping their yield farming on ETH Layer 1. Those interested in the Devnet testing for the PAI stablecoin can do so using this link 


Why Choose Solana?

The Party Parrot team chose to build on the Solana blockchain because its latency improvement is 100x and its capacity improvement is 10000x more than that of Ethereum's Layer 1. With these latency specs, it is possible to develop simple decentralized applications (dApps) that are similar to a typical web app. Meanwhile, more projects and protocols continue to launch on the Solana blockchain. Another recent example is LidoFinance, which is a liquid staking solution for Ethereum and Terra that recently launched on Solana.


About Parrot

Source

Parrot Protocol will enhance the liquidity of LP tokens upon launch, and will collect fees from four major sources to sustain the protocol for the long term. Long-term sustainability involves buying back $PRT from the open market and using it as an incentive for the insurance pool in case there is a shortfall in the lending market. A governance token (gPRT) will be awarded to PRT holders who prefer to lock up their tokens. The amount of gPRT tokens that would be earned depends on the lockup period. Parrot is a Solana Hackathon winner and an EcoSerum grant receiver.


Updates

According to their Medium page, here are updates regarding their plans for the remainder of this year and the first quarter of next year:

2021 Q2 April-June: LP tokens collateralized with stablecoin

2021 Q3: LP collateralized crypto lending

2021 Q4 - 2022 Q1: using PAI and vAMM to perform margin trading

The team will be providing more updates through their various social media channels, including Twitter, Telegram and Discord.


Closing Thoughts

The collateral debt position of the Parrot Protocol on $SOL is a smooth experience which is proof that the Parrot protocol will be well-received and effective. Plans are already underway on integrating this Protocol on Step Finance as well, meaning that those who want the early-mover’s advantage will need to act quickly to take advantage.


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Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile crypto writer and researcher on fintech, the blockchain and emerging technologies. He has several published works online and in the print media. He loves reading, research, traveling, meeting people and football. When he is not writing, he spends time with his lovely wife and kids.