Liquidity

Paribus. The Fragility of Finance.

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Time Stamp: March 25, 2023 7:27 AM - Modified On: March 25, 2023 - Published By:
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Republished By Plato

Despite a lot of turbulence in the markets this week the Federal Open Market Committee (FOMC) did exactly what was predicted. Jerome Powell carefully adjusted his language and reframed the narrative around his 25 basis point rate hike to try and calm the markets he had helped to damage. His forward guidance was only to expect further rate increases if inflation spirals out of control. He avoided taking any responsibility for the recent bank failures, claiming instead that the sector was stable and robust. In reality, the global financial system

Don’t Fear the FUD

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Time Stamp: March 11, 2023 5:37 AM - Modified On: March 11, 2023 - Published By:
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Over the past week, the crypto market has taken a hit due to the usual Fear, Uncertainty, and Doubt (FUD) surrounding the potential for interest rate hikes and future regulations. It’s easy to get sucked into the panic and feel that crypto is being unfairly targeted. FUD is part and parcel of the crypto space and there are always plenty of narratives that accompany its volatility. In 2021 the favorite topic was China’s negative approach to crypto. Fast forward to today and Bitcoin miners are back operating in China and

Paribus: Measure Twice, Cut Once.

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Time Stamp: February 25, 2023 1:21 AM - Modified On: February 25, 2023 - Published By:
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Measure Twice, Cut Once It was with a heavy heart that we decided this week to reschedule our MVP launch to early March. It wasn’t a decision we took lightly, knowing full well that it would cause ripples of disappointment throughout our community. As many people know we’ve been working closely with auditors at Hacken to ensure that the MVP is as secure as possible. Our decision to reschedule the launch is to allow the team at Hacken to work directly with our developers next week. Chris, our security advisor

Paribus: A Regulatory Squeeze.

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Time Stamp: February 15, 2023 3:26 AM - Modified On: February 15, 2023 - Published By:
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A Regulatory Squeeze A common narrative you hear in crypto is that regulatory clarity will cause institutional investors to flood into the space. It’s often cited as the trigger for the next bull run. However, each time news of regulations hits the headlines markets plummet, and last week’s settlement between the SEC and Kraken was no exception. While it’s true that forward-thinking regulations will help to remove a lot of uncertainty from the space, it’s doubtful it will cause the next bull run. As we’ve seen from the present market

Paribus: How loans work.

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Time Stamp: February 8, 2023 12:42 PM - Modified On: February 8, 2023 - Published By:
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How Loans Work A surprising number of people worldwide have little understanding of how the modern monetary system works. This lack of financial literacy can have significant impacts on individuals and their ability to become more productive members of society. For instance, many people think that debt is bad without understanding that it’s an essential ingredient for growth. All of the world’s major economies operate a debt-based model which is paramount to ensure continued growth and expansion. Without the ability to create debt, growth is dictated by the current level

The Question of Liquidity

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Time Stamp: December 30, 2022 5:28 PM - Modified On: December 30, 2022 - Published By:
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While many people consider valuation to be the most challenging aspect of NFT lending, the real issue is liquidity. When taking an NFT as collateral for a loan it would be a recipe for disaster to think it can be sold easily at all points in the market cycle. During 2021 NFTs experienced a huge uptake in their popularity. Some said this surge in demand was the cause of increased gas fees on the Ethereum network. However, in between the two peaks of this surge, there was a terrifying liquidity

Paribus: Price & Value Explained

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Time Stamp: December 24, 2022 5:38 AM - Modified On: December 24, 2022 - Published By:
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Price and Value Warren Buffet famously said, “Price is what you pay, value is what you get.” When developing a new type of borrowing and lending platform one of the most complex aspects is understanding how to weigh both price and value. With fungible tokens such as Bitcoin and Ethereum assessing their value is relatively simple and straightforward. A protocol can take live data from a variety of market makers and adjust collateral values based on price and liquidity. However, when it comes to non-fungible tokens (NFTs) this gets much

Regulators at the Ready

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Time Stamp: December 16, 2022 2:32 PM - Modified On: December 16, 2022 - Published By:
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Just as bull markets have narratives, so do bear markets, and the overriding narrative of this year has been regulation. Time and again the media has conflated a lack of regulation in crypto with the failures we’ve seen. It’s easy for people to conclude that as soon as regulation comes to crypto, investors will have confidence and flood back into the market. If that was true you would expect to see the stock market flooded with liquidity, but tech stocks are experiencing similar conditions to crypto. Not only is there

China’s Walled Garden

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Time Stamp: December 14, 2022 3:14 AM - Modified On: December 14, 2022 - Published By:
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Continuing our theme of speaking with people in the world of finance and technology we asked insiders at ByteDance in Shanghai their views about blockchain technology. The results give some useful insight into one of the likely narratives of the next bull run. In previous cycles narratives have ranged from Bitcoin being digital gold to NFTs being the cutting edge of the art scene. These topics pull new users into the space and with their added liquidity the value of the market begins to rise. The present decline in value