Bangalore, India and Dubai, March 28, 2022: Paxo Finance, a stealth-mode startup, has announced the launch of its protocol for investment loans in the metaverse finance (MetaFi) space. This decentralized protocol will allow users to buy crypto assets by borrowing from multiple pools with up to five times the users’ assets.
Paxo Finance will empower people worldwide to buy digital assets such as tokens, nonfungible tokens, game accessories or land in the metaverse with approximately 80% borrowed capital. This open-source, permissionless protocol has already raised $1 million of funding from Zebpay, Lemon Grass Fund, Avinash Shekhar & Raj Kansara from Zebpay, Rajat Gahlot from QuillHash Technologies, Mithil Thakore from TeraSurge and other angel investors.
The protocol manages risk using a wall garden technique rather than on-chain credit scores; the testnet version has already been launched and has been widely appreciated and tested by the Paxo community.
The protocol was audited by QuillHash for security, codebase quality and correctness. Further, the protocol is being audited by another independent agency at the moment.
With Paxo, users may borrow and invest in a variety of digital assets using the protocol. The purchased assets are kept locked in the protocol, and users can use the purchased assets for staking, yield-farming and more. Paxo’s interest rates are extremely competitive and among the best in the industry, allowing lenders to earn significant, long-term returns while giving borrowers predictable loans and allowing them to participate in the cryptocurrency market.
Moving under-collateralized lending activities to the blockchain gives lenders of all sizes and backgrounds access to new markets while also allowing borrowers the best potential capital efficiencies to exchange.
Shekhar, CEO of Zebpay, said, “We are delighted to invest in Paxo’s vision for decentralized finance (DeFi) 2.0. This space has witnessed significant innovation and is expected to grow multifold in 2022. Their efforts toward introducing uncollateralized loans on-chain will be a cornerstone effort in bringing more active participation in the DeFi and metaverse ecosystem.”
Paxo’s goal is to get the next million wallets in the DeFi 2.0 ecosystem activated. The platform will allow retail investors to have access to funds in order to participate in crypto-assets with little collateral. Paxo is partnering with other DeFi protocols for staking and farming with invested assets.