Polygon Based PAXO.Finance Launches Into The MetaFi Space With 1M Seed

Bangalore/Dubai: Paxo Finance, a stealth mode startup has announced the launch of a  protocol for investment loans in the MetaFi space. This decentralized protocol will allow users to buy crypto assets by borrowing from multiple pools with up to 5X of the users’ assets.  

Paxo Finance will empower people across the globe to buy digital assets like tokens, NFTs, Game accessories or land in metaverse with ~80% borrowed capital. This open source permissionless protocol has already raised funding of $1Mn from Zebpay, Lemongrass Fund, Avinash Shekhar & Raj Kansara from Zebpay, Rajat Gahlot from QuillHash, Mithil Thakore from TerraSurge, and other angel investors. 

The protocol manages risk using a wall garden technique rather than on-chain credit scores; The testnet version has already been launched and has been widely appreciated and tested by the Paxo community.

The protocol was audited by Quillhash for security, codebase quality and correctness. Further, the protocol is being audited by another independent agency at the moment. 

With Paxo, users may borrow and invest in a variety of digital assets using the protocol. The purchased assets are kept locked within the protocol, users can use the purchased assets for staking/ yield farming etc within PAXO protocol. Paxo’s interest rates are extremely competitive and among the best in the industry, allowing lenders to earn significant, long-term returns while giving borrowers predictable loans, allowing them to engage in the cryptocurrency market.

Moving the under-collateralized lending activities to the blockchain gives lenders of all sizes and backgrounds access to new markets while also giving borrowers the best potential capital efficiency to exchange.

Adding to this, Paxo’s investor, Avinash Shekhar – Zebpay stated,

“We are delighted to invest in Paxo’s vision for DeFi 2.0. This space has witnessed significant innovation and is expected to grow multifold in 2022. Their efforts towards introducing uncollateralized loans on chain, will be a cornerstone effort in bringing more active participation in the DeFi and metaverse ecosystem.”

Paxo’s goal is to get the next million wallets in the DeFi 2.0 ecosystem activated. The platform will allow retail investors to have access to funds in order to participate in crypto-assets with little collateral. PAXO is partnering with other DeFi protocols for enabling staking & farming with the invested assets.