PARSIQ, IQ, and 1 Million PRQ
PARSIQ is hoping to help projects leverage the possibilities of DeFi via the IQ Protocol.
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DeFi is growing fast, and PARSIQ is aiming to become a key part of the movement.
The Rise of DeFi
The world is witnessing the birth of a new era in the world of global finance. Blockchain, and all that its technologies enable, will evolve to become the de facto standard of how transactions will soon be conducted globally. The advantages and accessibility that these technologies offer are so enormous that the world will one day wonder how it ever lived without them.
In the world of cryptocurrencies, things are moving fast. In particular, 2021 has seen a turbo-charged rise in the area of decentralized finance (DeFi). The Total Value Locked (TVL), which represents the number of assets that are currently staked in a specific protocol, has quintupled since the start of the year. The TVL peaked at over $97 billion at the beginning of September, before falling to around $80 billion in recent weeks.
Despite the recent cooling of the market, there is no doubt that DeFi is here to stay, and that interest among the general public and institutional investors is rising, as understanding around this new model of lending in finance increases.
The Launch of IQ Protocol
Recognizing the changing tides in global finance, PARSIQ launched the IQ Protocol earlier this year. It introduced the first risk-free, collateral-less DeFi protocol to tokenize subscription-as-a-service (SaaS) in the DeFi space with a circular economy.
While the launch of IQ also launched PARSIQ into the realm of DeFi, its intent extends far beyond this application. As an open-source protocol, any project can utilize IQ to fit their needs and leverage all of the capabilities that IQ offers. PARSIQ provides three levels of service, dubbed the “Threemium model,” including:
- Free model – with limited usage and mainly used for testing the platform.
- Premium model – where PARSIQ accepts most major cryptocurrencies, PRQ, and fiat as payment, with payments going directly to liquidity providers in the IQ Protocol pool as rewards.
- Hodlium model – where users swap PRQ for non-expirable Power Tokens (pTokens), which then allows for the use of PARSIQ base monitoring services without paying any additional fees.
PARSIQ’s Entry into the DeFi World
With the IQ launch, PARSIQ also became the protocol’s first customer, taking advantage of all that the new protocol had to offer: creating a decentralized subscription-as-a-service model for all companies wanting to leverage all of the benefits offered by the blockchain technology.
At a high level, PARSIQ created a pool attached to a smart contract. However, unlike other pools such as Uniswap, this one doesn’t require users to match deposited tokens with another token. Therefore, users only supply PRQ tokens that they may be interested in lending to others.
By staking PRQ into IQ, the pool mints an iPRQ NFT (Interest PRQ), which is then distributed to the stakeholder. This serves as proof that PRQ was placed into the pool. When users rent the PRQ deposited by the stakeholder, the pool mints a wrapped version of the PRQ, dubbed Power Tokens (pTokens), which are then issued to the renter. From the fee the renter paid for renting the tokens, an iInterest is paid to the stakeholder whose tokens were rented out. The PRQ doesn’t leave the pool at any point, so the stakeholder can rest assured that their original tokens remain safe.
Since launching IQ for its own subscription model at the end of June 2021, PARSIQ has seen its TVL grow past 19 million PRQ (more than $10 million at the time of writing), with over 7 million PRQ currently being rented and earning valuable yield and interest for the stakeholders. Interest in this new product is growing and developing within the community as more and more individuals learn about the possibilities that IQ brings to DeFi. Several projects having signed up to use the IQ Protocol for their own tokenomics, including Mysterium, CDzExchange, and Coreto.
PRQ Incentive Program and IQ Protocol Governance Token
PARSIQ recently announced the launch of a 1 million PRQ incentive program, which allows all eligible IQ Pool participants to earn rewards. The incentive will be shared proportionally amongst wallets providing liquidity to the renting pool from Oct. 1 to Dec. 31, 2021. Rewards will be vested for four months, with 25% unlocked on Feb. 1, 2022, with equal unlocks every month subsequent on the 1st, and the final unlock occurring on May 1, 2022. Once the funds are unlocked, eligible wallets will be able to claim them.
At the time of the snapshot, all liquidity-providing participants will also be eligible for the airdrop of the new IQ Protocol governance token if participating in the PRQ pool. It’s expected to arrive in the first half of 2022. PARSIQ plans to share more details regarding the IQ governance token in the coming months. However, before then, PARSIQ is welcoming any crypto project that could leverage IQ in an effort to refresh the utility of their project’s token.
PARSIQ, IQ, and the Continuing Evolution of DeFi
The blockchain industry continues to grow and evolve at a breakneck pace. While DeFi has been around for several years, it is still very early in the industry, especially in comparison to traditional financial services markets today. PARSIQ has recognized the significant potential that this space has, and is ready to take a position early on and help other crypto projects to do the same.
As this field continues to grow, projects should assess how their current models stand to take advantage of the exponential growth that is expected to arrive in the subsequent years. With so much to think through, consider reaching out to PARSIQ for more guidance on how to leverage this growing space and learning about how IQ Protocol could help.