What is Parrot Protocol DeFi Network [Solana Series]

Michael  0:01  

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Hey, welcome to today’s podcast, we hit number one on Apple in our category in Nigeria. So thank you to all of our listeners in Nigeria, as well as wherever you are in the world tuning in from. It’s been an exciting time for my team and I lately. We also just hit number one on Tunein. So if you’re listening to this podcast on tune in, we are now number one when searching crypto. So I truly think the entire community. I’ve been interviewing some of the top people in the industry recently and have lined up numerous more interviews of founders and co founders of amazing crypto projects. So definitely subscribe to the podcast. Click on the bell notification to be alerted when new episodes are released. Without further ado, let’s jump into today’s episode. So what is Parrot protocol, the defined network built on Solana? The Parrot protocol is a defined network built on Solana that will include the stablecoin PAI, that’s P-A-I, and it’s a noncustodial lending market Parrot is and margin trading vAMM. The Parrot protocol is setting out to make value locked in LP tokens accessible by creating a liquidity and lending network collateralized by these LP tokens. Although the Parrot protocol is still extremely early in its development, it is enjoyed some of the support of a loving community. So let’s unpack and break down some of the benefits and features of Parrot. Well number one it’s built on Solana and as you know Solana has a high performance permissionless blockchain based on proof of history PoH definitely listen to my episode all about Solana, if you’re not familiar with it, or if you haven’t heard that episode. 

So the Parrot team chose to build on the Solana blockchain because it’s extremely quick and the gas fees are low. And there’s a lot of other technical information that I’ll have on today’s episode on the blog post page for you. But let me break down the liquidation pools for a moment. There it is a lending protocol in liquidation is important for maintaining the solvency of the system. It takes both capital and technical know how to operate liquidation bots, this problem narrows the range of people who can protect the network solvency. In the liquidation pool users can deposit PAI to earn yields. Meanwhile, the protocol will run automations to use the capital in the liquidation pool to liquidate positions. The earnings will be paid to the participants in the pool proportionally, yet it will not require them to operate bots in an individual basis, it will be sufficient for only a handful of participants in the pool to have the technical ability to operate bots. So let’s break down the protocol business model. For the long term viability of the protocol. There must be a healthy business model and the Parrot protocol will collect fees from the services it provides, use the fees to buy back PRT on the open market and cycle back the PRT as protocol incentives. The three main sources of the protocol fees are stability fees collected on the stablecoin PAI, the ticker symbol is P-A-I by the way, also number to borrow interest on the PAI supply and liquidation penalties, also borrow fees collected on the lending market. So let me break down the insurance pool: to secure the solvency of the system the PRT token, which is the parent token on their network. The PRT token will be used to incentivize in insurance pool, which may be used to backstop any shortfall in the lending market. In extreme market conditions PRT tokens may be minted to write off bad debts. Let’s also break down the token gPRT: to encourage long term community participation in the governance, PRT holders who choose to lock up their tokens will receive the governance token and it’s gPRT, and they will receive that in return for locking up their tokens for a longer period of time, these GPR T tokens will entitle their holders to have additional voting power. 

Parrot finance is intended to be community driven, and the team would like to build on that vision by rolling out the Parrot contributor rewards program, and they value their community, especially the members who choose to directly contribute to the project. So by showing off their skills on the pair of discord, you can distinguish yourself from everyone else, by having an OG distinguished role. And as an OG, you will be entitled to many perks including badges, custom parent avatars, exclusive NFTs and more. So there’s many ways to contribute. Definitely check that out. But you can design animation, content creation, moderation, etc. Even help organize events, I’m going to try to get some of the team interviewed on the podcast from Parrot. I’m really interested in this, this young protocol, and there’s still a lot of room for growth for it. Short term decisions should align with long term commitments to build a useful and profitable protocol that can serve an ever growing DeFi market over the next decade to align the short term benefits of PRT holders with the long term interests of the Parrot protocol, It’s to tie into the incentives of holding PRT to the successful metrics of the protocol. Parrot believes that the best way to do this is to take the revenue generated by the protocol and accrue that to the PRT holders. As the protocol continues to grow, the PRT token will become worth more and more, of course, so the team members, the project has enjoyed rapid growth since its presence into the DeFi world thanks to the efforts made by the team members. So I’ll have all of the links for Parrot in more information on the website. So just head over to the site for today’s episode. Definitely like and subscribe to this podcast. I hope this little overview about Parrot has been informative, and maybe it was as an intro for you to this project. Definitely chime in here tomorrow for a very special episode. And if you have suggestion about an episode that you would like to hear, or have presented or even someone that that you would like to see interviewed in the industry, shoot me over an email. You can reach me at show@newtocrypto.io that show@newtocrypto.io. Until tomorrow, make it a great day.

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