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What is Parrot Protocol DeFi Network [Solana Series]

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By: cryptotravelsmichael

Michael  0:01  

Welcome to the New To Crypto podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host Crypto Travels Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New to crypto podcast brings you new episodes daily Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto don’t know where to start? Are you more experienced but have questions? Then you’re in the right place. This podcast is designed for you, coming at you from the training center in the lifestyle design studio. Here’s your host Crypto Travels Michael.


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 that Until tomorrow, make it a great day.


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Table of Contents

Welcome back to another podcast episode! Today’s discussion will be about a Solana-based DeFi network, known as Parrot Protocol. 

What Is Parrot Protocol? 

The Parrot Protocol is a Solana-based DeFi network that will contain the stablecoin PAI, a non-custodial loan market, and a margin trading vAMM. These are various use cases aimed at solving the same problem: gaining access to value locked in DeFi systems.

The Parrot protocol will be launched on the Solana blockchain, according to the company. The team’s goal is to overcome the problem of value locked in DeFi systems being inaccessible. 

A margin trading virtual car market maker, a non-custodial loan market, and a stablecoin (named PAI, symbolized as $prt) are just a few of their services. Parrot is an LP token-collateralized liquidity and lending network that addresses the problem of value locked in DeFi systems being inaccessible. 

Devnet testing for the protocol’s first available product has been published. It’s known as the PAI stablecoin, and it’s run by Solana. Holders of the PAI stablecoin can participate in new yield farms on Solana without having to stop yield farming on ETH Layer 1. This allows for greater capital efficiency.

Parrot x Solana

The Party Parrot team chose the Solana network because it has a 100x latency improvement and a 10000x capacity improvement over Ethereum’s Layer 1 blockchain. It is feasible to create simple decentralized apps (dApps) that are similar to a conventional web app using these latency specifications. 

Nonetheless, the Solana blockchain continues to see new applications and protocols emerge. LidoFinance, a liquid staking solution for Ethereum and Terra that recently launched on Solana, is another notable example.

Further Details 

The Parrot Protocol aims to unlock the value held in LP tokens by establishing a liquidity and lending network backed by these tokens. The following is part of the Secret Parrot Master Plan:

Create the PAI stablecoin, which will be backed by LP tokens. This establishes a single unit of account, making it simple for holders of various LP tokens to transact with one another.

Create the Parrot Lending market, which will accept LP coins as collateral. This allows LP holders to borrow against lender liquidity to retrieve their locked value.

Create a virtual AMM (margin trading product) with PAI as the common unit of account. The Parrot community may now collect fees and feed the family. 

Parrot Protocol will increase the liquidity of LP tokens at launch and collect fees from four primary sources to ensure the protocol’s long-term viability. Long-term viability entails purchasing $PRT on the open market and utilizing it as an incentive for the insurance pool in the event of a lending market shortfall. 

PRT holders who wish to lock up their tokens will receive a governance token (gPRT). The number of gPRT tokens earned is determined by the lockup period. Parrot won the Solana Hackathon and received an EcoSerum prize.

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. They value their community, especially the members who choose to directly contribute to the project. I'm really interested in this young protocol, and there's still a lot of room for growth for it.

Here's What We Discussed in Detail in This Interview

  • What is Parrot
  • Benefits and features
  • Governance and gPRT Tokens
  • The PRT Token

Killer Resources


Final Thoughts

The Parrot Protocol’s collateral debt position on $SOL is a pleasant experience, indicating that the protocol will be well-received and effective.

Plans are currently in the works to integrate this Protocol with Step Finance, which means that individuals who wish to take advantage of the early-advantage mover’s will have to act swiftly.

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Crypto Travels Michael


Helping those to navigate the crypto landscape with pinpoint accuracy.

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