Solana is the ecosystem that recorded impressive growth in 2021, 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. 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
PRT Price Today
Party Parrot has 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.
How to get PRT token
You can get PRT tokens from Gate.io.
How to store PRT token
PRT is an SPL token so you can store PRT on the Coin98 Solana wallet or the Multichain Wallet. You can find the detailed introduction of how to install and set up Coin98 Wallet right here.
- 2021 Q2 April-June: Stablecoin with LP collaterals.
- 2021 Q3 Solana DeFi Summer: Crypto lending with LP collaterals.
- 2021 Q4 -2022-Q1: Margin trading with vAMM, using PAI.
Team, Investors, and Partners
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.
Party Parrot has been active in establishing partnerships with different protocols on Solana to create more utilities for its token. It has already partnered with Saber, Orca, Port finance, Mercurial ... and more to be announced from the team.
Is Party Parrot (PRT) a good investment?
I hope that from all the mentioned information, you can get a basic understanding of Party Parrot to start researching more about this project. It is hard to tell firmly whether any project/ token is a good investment or not. However, I will provide you with some key highlights of Party Parrot so that you can do your own research and make your own investment decisions:
- Solana has had tremendous growth in TVL, while Party Parrot is the protocol helping in increasing capital efficiency. Therefore, Party Parrot is expected to become an essential building block to boost liquidity for the Solana ecosystem.
- Party Parrot is the leading lending protocol on Solana with a TVL of $440M.
- The project is in the early stage of development and offers many incentive programs. You can go to their sites and find your own investment opportunities.
Other projects that also issue stablecoin and provide lending services:
- MakerDAO (MKR & DAI): Decentralized lending platform on Ethereum, with DAI as the stablecoin.
- Venus (XVS & VAI): Decentralized lending platform on Binance Smart Chain, with VAI as the stablecoin.
Party Parrot is in its early stage of development and has ambitions to scale more in the future. This ambition is totally possible when AMM and Yield Farming landscape on Solana gradually fully developed, and the money flow starts to seek for the next lego: Lending protocol.
Party Parrot has the advantage of a first mover and already proved its capability by the remarkable growth in TVL. If Party Parrot can successfully apply the model of MarkerDao while having a suitable adjustment on Solana, then the project soon will capture more value in the future.
If you have any questions related to this topic, feel free to comment in the section down below.