Paxo Finance Announces the Release of their Technical Whitepaper
The Paxo Finance Whitepaper introduces the PAXO utility and governance token. It also details the solution and architecture of the trustless money market ledger.
Bangalore,India, April 29, 2022: Paxo Finance is today thrilled to announce the release of their technical whitepaper.
The Paxo Finance whitepaper gives the purpose and technology behind the DeFi protocol in detail. It also provides requisite information, educating users on how the Paxo Finance solution is critical to the burgeoning multi-billion DeFi industry.
The Paxo Finance whitepaper also unveils the protocol’s native token, PAXO, describing its utility and governance role.
By early Q2 2022, the cumulative Total Value Locked (TVL) across various DeFi ecosystems stood at $211 billion. Ethereum remains the most dominant, with a market share of 54%, at $114.94 billion.
A big part of DeFi comprises secure money markets allowing digital asset holders to lend and borrow guided by a mechanism requiring users to overcollateralize before accessing loans. Furthermore, existing cryptocurrency exchanges supporting margin offer exorbitant double-digit funding rates leading to capital inefficiency, especially when invested in a highly volatile crypto market.
The need to overcollaterize or access loans with high-interest rates cut out the majority of digital holders from participating, slowing down financial inclusion. By early 2022, the global unsecured lending market stood at over $11 trillion.
Paxo Finance is a decentralized, secure, smart contracts-driven money market protocol on Ethereum. It opens up investment loan options in DeFi for global users to invest in digital assets via isolated multi-pool borrowing without overcollateralization when borrowing.
Commenting on the release of the whitepaper, Pranjal Prashar, the co-founder, said:
“The diverse global team behind Paxo Finance is, for the first time, releasing a completely trustless solution for users to access decentralized undercollateralized loans without relying on external credit scoring firms or any other intermediary.”
Paxo Finance liquidity providers receive high sustainable yields when they lend assets. Concurrently, borrowers access predictable investment loans empowering them to trade or invest in the digital asset market. Depending on the prevailing supply and demand dynamics, interest rates will be applied uniformly to all borrowers.
All operations are autonomously controlled by audited and publicly accessible smart contracts allowing Paxo Finance to operate as a sustainable, secure, decentralized money market platform.
About Paxo Finance
Paxo Finance is a decentralized money market in Ethereum for users to receive undercollateralized investment loans. Its solution does not rely on credit scoring systems or third-party intermediaries. PAXO is the native ERC-20 utility and governance token whose holders have voting rights to determine the development trajectory of the project.
Telegram : https://t.me/paxofinance