Crypto Bana
5 min readDec 18, 2022


The Paribus protocol is a decentralized protocol for facilitating automated, efficient, and secure trade finance transactions. It is built on the Ethereum blockchain and uses smart contracts to automate the process of trade finance.

Users of the Paribus protocol include trade finance providers, such as banks and financial institutions, as well as businesses that engage in international trade. These users can use the Paribus protocol to automate trade finance transactions, streamline the process of trade finance, and reduce the risk of fraud and errors. The Paribus protocol aims to provide a more efficient and secure way for businesses to finance their international trade by automating the process of trade finance and reducing the need for manual intervention. It also aims to reduce the cost of trade finance for businesses by leveraging the power of smart contracts and the Ethereum blockchain.

In the Paribus protocol, borrowers are users who are seeking to borrow cryptocurrency assets from lenders in exchange for collateral. The collateral is typically in the form of another cryptocurrency asset, and it is held by the protocol in a smart contract as security while the loan is outstanding.

Lenders are users who are willing to lend out their cryptocurrency assets to borrowers in exchange for interest. Lenders can participate in the Paribus protocol by depositing their assets into a smart contract and setting the terms of the loans they are willing to make, including the interest rate and the duration of the loan. The Paribus protocol then matches borrowers and lenders based on these terms.

It’s important to note that the Paribus protocol is an automated system, and borrowers and lenders do not interact directly with each other. Instead, they interact with the protocol through smart contracts, which facilitate the loan process and ensure that all parties fulfill their obligations.
In the world of cryptocurrency, the term "hodler" refers to someone who holds onto their assets for a long period of time, rather than selling them. This term originated from a typo in a post on the Bitcoin forum in 2013, in which the user meant to write "hold" but instead wrote "hodl." The term has since become a popular way to refer to cryptocurrency investors who are committed to holding onto their assets for the long term, regardless of market fluctuations or other external factors.

While "hodlers" may not be actively involved in the day-to-day trading of their assets, they may still participate in other activities related to the cryptocurrency market, such as lending their assets through a platform or staking them in order to earn rewards. It is important to note that the decision to hodl or not is a personal one, and individuals may choose to hold onto their assets for different reasons. Some may believe that the value of their assets will increase over time, while others may simply want to support the long-term success of a particular cryptocurrency or blockchain project.

Paribus is a cryptocurrency lending platform that allows users to earn passive income by staking their digital assets as collateral for loans. When a user stakes their assets on the platform, they are essentially agreeing to lend their assets to borrowers in exchange for interest. The Paribus protocol manages the lending process and ensures that the assets are used safely and securely. The user earns interest on their staked assets as the loans are repaid.

It's important to note that lending and staking digital assets carries inherent risks, including the risk of default by borrowers and the potential for market fluctuations that can impact the value of the staked assets. It's important for users to carefully consider the risks before participating in any lending or staking program.

In a fully-collateralized loan, the borrower must provide collateral to secure the loan. The collateral is a asset that the lender can seize if the borrower fails to repay the loan. In the case of the Paribus network, it appears that the borrower must deposit an amount of collateral equal to the value of the funds they wish to borrow. This means that the borrower is essentially using their own assets as collateral for the loan. As a result, borrowers on the Paribus network are also acting as liquidity providers, as they are providing the collateral that enables the loan to be made. When a borrower takes out a fully-collateralized loan, they are effectively borrowing their own funds and using them for a specific purpose. The lender is essentially acting as a facilitator, providing the borrower with access to the funds and collecting a fee for their services.

It’s important for borrowers to carefully consider the terms of a fully-collateralized loan and the risks involved. In the event that the borrower is unable to repay the loan, they could lose the collateral they have provided. It’s also important for borrowers to understand the value of the collateral they are using to secure the loan, as it will need to be sufficient to cover the amount of the loan.

In a decentralized finance (DeFi) protocol, borrowers play a crucial role in the functioning of the protocol. When a borrower takes out a loan, they typically pay a small one-time fee to cover the cost of processing the loan. The borrower is also subject to paying an interest rate on the loan, which is usually a percentage of the loan amount. The interest that is paid by the borrower is typically reinvested into the protocol and distributed to PBX token holders as a reward for their participation in the protocol.
Borrowing is an important part of DeFi protocols because it allows users to access capital and use it to participate in various financial activities, such as trading, investing, or hedging. By borrowing, users can leverage their assets and potentially increase their returns. However, it is important to note that borrowing also carries risk, as borrowers are responsible for repaying the loan and interest. It is therefore important for borrowers to carefully consider their financial situation and the terms of the loan before borrowing.


It is important to note that the Paribus token (PBX) is a digital asset and it is important to thoroughly understand the risks and potential rewards of holding and using this asset. As with any investment, it is important to do your own research and carefully consider the risks and potential rewards before making any investment decisions.
In general, governance tokens like PBX give token holders the ability to participate in the decision-making process for a particular protocol or platform. This can include voting on proposals for new features or changes to the platform, or participating in the management of the platform in some way. It is important to carefully read and understand the specific governance rights and responsibilities associated with a particular token before making any investment decisions.

It is also important to be aware of the risks inherent in holding and using digital assets, including the risk of loss due to price fluctuations, technical issues, or cyber attacks. It is always a good idea to carefully consider the risks and potential rewards before making any investment decisions.