Supervault: The Evolution of Vaults in the Parallel Protocol
Since its inception, the Parallel Protocol has transformed the decentralized finance (DeFi) landscape by introducing the world’s first decentralized stablecoin pegged to the euro, offering users unparalleled liquidity access without the need to sell their assets. At the heart of this revolution is the robust mechanism of Vaults. Today, Mimo Labs is proud to unveil Supervault, an enhancement built on top of the Parallel Protocol and controlled by Mimo Labs that brings a plethora of new functionalities.
Understanding the Value of Vaults
Before diving into Supervault’s details, it’s vital to understand why Vaults are integral to the Parallel Protocol. They serve as the guardians, ensuring the stability and security of minted tokens by keeping them over-collateralized. The unique design ensures that only the Vault owner can access it, ensuring safety until liquidation — a feature that arises when market volatility threatens the loan’s position.
Introducing Supervault
Building upon the already robust structure of Vaults, the introduction of Supervault marks a significant leap in the DeFi ecosystem. With Supervault, users gain:
- Leverage Capabilities: Gone are the days when leveraging assets required substantial capital. With Supervault, leveraging becomes a seamless process, taking through Aave a flash loan of the collateralized asset, depositing it into a Supervault-owned vault, and minting $PAR. All this while maintaining the protocol’s Minimum Collateral Ratio (MCR). This feature lets users harness the power of assets they believe in with unmatched ease.
- Rebalance Functionality: Market volatility is inevitable. When collateral value moves in an unfavorable direction, users often seek alternatives like USDC to rebalance. Supervault automates this previously manual process. By taking a flash loan of the original collateral, swapping it for the rebalanced one, depositing, minting from a new vault, and finally repaying the loan, rebalancing becomes a breeze, saving invaluable time.
- Empty Vault Option: Upon deciding to repay all debts and retrieve the collateral from a vault, users no longer need to input extra capital. The EmptyVault function streamlines this: flash loan collateral, swap it for PAR, use the PAR to repay the debt, and retrieve the original collateral. The complexities are reduced to a mere click.
The Journey to Supervault
Supervault is not a random innovation; it is a meticulous response to observed user behaviors and feedback. While the core capability of leveraging assets has always existed within Parallel, the market’s inherent volatility often made processes like rebalancing cumbersome. Supervault eliminates this hassle, embodying the true essence of DeFi by offering more control, precision, and efficiency over one’s finances.
Furthermore, the tools and functionalities we introduce are crafted to enhance user focus, ensuring they spend less time on manual interventions and more on strategic financial planning.
Looking Ahead
At Mimo Labs, we’re committed to pioneering DeFi innovations that resonate with real user needs and challenges. While the classic Vaults remain the backbone of the Parallel Protocol, the advent of Supervault and the upcoming advanced vault types promise a DeFi experience that’s more intuitive and rewarding.
For more information about Supervault, please visit: https://docs.mimo.capital/parallel-protocol/parallel-protocol/super-vaults-sv
To use Supervault, please visit: https://par.mimo.capital/
Have more questions? Join our community on Telegram: https://t.me/mimo_labs/1
