In 2021, Solana is the ecosystem that recorded impressive growth with the most TVL accumulated in AMM and Yield Aggregator (Saber & Sunny). After AMM DEX and Yield Farming, Lending is expected to be the next area to capture value from the expanding ecosystem.
Among several lending projects on Solana, Party Parrot is the protocol having the first mover’s advantage. The TVL of Party Parrot reached nearly 440M after 3 months of establishment. In this article, we will find out what Party Parrot is and its potential to become a fundamental building block on Solana.
What is Party Parrot?
Party Parrot is a liquidity network for lending and borrowing on Solana. You can take MakerDao as an analogy with Party Parrot. Both allow users to mint stablecoin by depositing a certain amount of their digital assets. However, Party Parrot takes one more step by allowing LP tokens on other protocols to be collaterals as well.
The reason behind this feature is that Party Parrot wants to make locked value in DeFi accessible. Currently, there are limited use cases for LP tokens while billions of dollars are locked under different DeFi protocols. By unlocking this substantial locked value, Party Parrot plays an essential role in increasing capital efficiency in DeFi systems.
How does Party Parrot work?
Party Parrot offers 3 main features:
Minting Stable coin (PAI): PAI is the stablecoin of Party Parrot. It is pegged to 1 USD and maintains this peg by overcollaterization and interest rate. The advantage of borrowing PAI over other stablecoin is its extremely cheap cost at 0.1%-0.2% compared to 10%-30% with USDT/USDC.
Unifying $SOL Stake Pool Tokens (SPTs): Party Parrot allows all different SPTs on Solana to be used as collateral to mint pSOL. This way, Party Parrot unifies different SPTs into one pSOL to avoid higher fees and slippage when traded with different STPs.
Staking: prtSOL is Parrot’s stake pool token, acquired by transferring an existing stake account or depositing SOL directly at parrot.fi.
What is the PRT token?
PRT is the governance token of Party Parrot. At the initial stage of development, PRT is mainly used as an incentive to attract users to the platform.
Detailed information about PRT token
Party Parrot completed 2 IDO rounds (September 18, 2021) with the closed price as follows:
- Round 1: $0.041208
- Round 2: $0.037010
PRT Key Metrics
- Token Name: Party Parrot
- Ticker: PRT
- Blockchain: Solana
- Token Standard: SOL
- Contract: PRT88RkA4Kg5z7pKnezeNH4mafTvtQdfFgpQTGRjz44
- Token type: Utility, Governance token
- Total Supply: 21,000,000,000 PRT
PRT Token Allocation
- Protocol incentives: 35%
- Team & Angels: 20%
- IDO: 10%
- Ecosystem & Partnerships: 10%
- Seed: 20%
- Protocol Controlled Reserve: 5%
PRT Token Sales
After the closed seed round at $5M, Party Parrot has successfully raised a total of $84M after 2 IDO rounds (September 18, 2021).
PRT Release Schedule
- Team & Angels: 1–3 year lockup.
- Seed: 1–3 year lockup.
PRT Token Use Cases
- Protocol Incentives.
- Backstop any shortfalls in the lending market in case the system is insolvent.
- Governance: Users lock up PRT to receive governance token gPRT. The longer the lock-up, the more gPRT they can mint.
The Party Parrot team is anonymous.
Party Parrot had raised $5,000,00 in the seed round from Alameda Research, QTUM VC, NGC Ventures, PetRock Capital, Coin98, MGNR, Sino Global Capital, SkyVision Capital, Solar Eco Fund, Chris McCann & Edith Yueng (Race.Capital), ROK Capital.
How to get PRT token
You can get PRT tokens from centralized exchanges like Gate.io, MEXC or decentralized exchanges such as Saros.
How to earn with PRT/PAI token on Saros
On Saros, you can either:
- Add C98 - PAI LP and farm on Saros with steaming hot APR.
- Stake PRT and earn PRT directly on SarosStake. No impermanent loss!
We hope that after this post, you have gained a better understanding of Party Parrot as well as how to make the most out of PRT/PAI tokens on Saros.
See you all in the upcoming posts of Explore-with-Saros Series!
Disclaimer: The information provided is given only for educational purposes, and it should not be considered financial advice. Saros is not liable for any financial losses or other damages incurred as a result of utilizing the aforementioned initiatives, platforms, or cryptocurrencies.
About Saros Finance
Saros Finance is the ultimate DeFi platform native to Solana, with trading, staking, and yield farming services. Built by Coin98 Labs, Saros Finance aims to adopt millions of users to DeFi.