Users who are eligible to claim will see a relevant banner at the top of the lending page.
Quick update on the Azuki Flash Claim.@Azuki holders can now claim the Elementals Airdrop through the ParaSpace Flash Claim feature without redeeming the Azuki!
If you are eligible to claim, you will see a banner at the top of the loan page. pic.twitter.com/kAUn9Uwwsx
— ParaSpace (@ParaSpace_NFT) July 5, 2023
Yesterday, ParaSpace announced its decision to temporarily suspend Azuki’s team, including deposits, withdrawals and liquidations. This measure is intended to give users more time to replenish liquidity, repay debt and improve health.
The decision was made in connection with the recent Azuki ecosystem collections which received a lot of criticism from the community for disappointing them with the new Elemental collection.
After the crisis of confidence broke out in Azuki, the price collapsed by more than 50% within 7 days. Amid insufficient liquidity, NFT lending platform ParaSpace abruptly suspended liquidation of Azuki’s collateral yesterday, resulting in tens of thousands of dollars in bad debt.
While the official stated that the move is intended to give users more time to replenish liquidity, repay debt and improve health, the liquidation will continue after that. And the lending platform says any shortfall at the end of the suspension will be covered by ParaSpace’s reserves. But it should be noted that ParaSpace’s losses could continue to spread without stabilizing Azuki’s price.
At a time when the market is facing major challenges due to the sharp fall in market prices, loan contracts must prove their worth for an illiquid asset like NFT.
ParaSpace is a lending project that the community is noticing in the NFTFi array. Although it has only just launched the mainnet version, the platform has surpassed BendDAO to lead the TVL ranking of NFT Lending projects.
DISCLAIMER: The information on this website is intended as general market commentary and does not constitute investment advice. We recommend that you do your own research before investing.
