What is paprMEME? paprMEME is an NFT Lending platform that allows users to deposit NFTs into the platform to mint papr tokens. Let’s find out what is special about this project with Weakhand in this article.
What is paprMEME?
paprMEME is a CDP platform for NFTs developed on Ethereum, users can deposit NFTs into Smart Contracts of paprMEME to mint the PAPR token (main token of the paprMEME platform). This model is quite similar to MakerDAO, you can read this article here to understand better.
PAPR token is defined by paprMEME with 2 prices:
- Target Price: Is the price used in the protocol when users pledge NFTs to mint papr tokens. Basically, the Target Price increases over time, so the borrower’s interest rate is calculated directly into the PAPR’s Target Price.
- Mark Price: is determined by market supply and demand and is real-time price on Uniswap.
The maximum LTV on paprMEME is 50%. Therefore, the maximum loan amount a user can borrow is calculated as follows:
Maximum loan amount = collateral value * max LTV / Target Price
Borrowers can swap PAPR mint tokens on the Uniswap V3 platform in exchange for other assets.
Sale: When the loan exceeds the value of the collateral, the borrower’s assets are liquidated. paprMEME uses a Dutch auction that starts at 3 times the floor price of the NFT and decreases by 70% every day until the NFT quantity is completely liquidated. paprMEME sells to the first person willing to buy a liquidated NFT, with the proceeds going to the borrower to reduce the LTV of the loan to an acceptable level.
What Is The Difference Of paprMEME?
Because PAPR tokens are traded on Uniswap V3, when users buy papr tokens on Uniswap or mint on the paprMEME platform, the transaction price will fluctuate and there is a difference between Target Price and Mark Price. paprMEME needs to encourage two prices to be as close to each other as possible, and paprMEME uses the Target Price of the PAPR token to ensure supply and demand are balanced.
If Mark Price < Target Price: This means that the market demand for papr tokens is small and there are many people minting PAPR tokens for sale. At that time, paprMEME increased the Target Price with each mint, causing borrowers to have to pay a larger debt and they tended to buy papr tokens on Uniswap to repay the debt.
If Mark Price > Target Price: This means that the market demand for PAPR tokens is large and when paprMEME lowers the Target Price with each mint, users tend to deposit NFTs into the platform because mints get more PAPR tokens.
Core Team
paprMEME was developed by 4 former employees who worked at Coinbase. In there:
Wilson Cusack : Founder
- Wilson Cusack graduated with a bachelor’s degree in computer science from Brown University.
- He started his career with an internship at several companies such as: Drishtee, eleni LLC, FarmLogs, Cargill since April 2012.
- In March 2016, he became CEO of Trade Ghaha company.
- In March 2019, he decided to quit his job and join Coinbase as a Software Engineer.
- In April 2022, he decided to start a business when he founded StartUp parpMEME – a CDP Lending platform for NFTs.
Investor
February 20, 2023: paprMEME announced the successful raising of $3M from Coinbase Venture.
Tokenomics
Update…
Information Channel of paprMEME Project
- Website: https://papr.wtf/
- Twitter: https://twitter.com/backed_xyz
- Discord:
summary
paprMEME has created an innovative lending platform by turning papr tokens into public debt and liquidity added by mints and buyers on Uniswap. However, this model still has many problems and the protocol has only been in circulation for a while, so it is difficult to judge its effectiveness for users. Hopefully through this article, everyone has interesting knowledge about paprMEME