FAQ
Frequently Asked Questions
1. Project Overview: What is Parallax Finance?
Parallax provides liquidity infrastructure that empowers individuals, DAOs, and other protocols to generate yield on Arbitrum.
Parallax is Built For:
Individuals - Earn optimized yield in our audited vaults
DAOs - Parallax provides a suite of tools and features for treasury management
Strategists - Become a strategist and earn a % of vault performance fee
Our current product roadmap is more akin to a Yearn-like protocol but natively built just for Arbitrum:
Our original genesis idea was to build a yield optimizer for native Arbitrum protocols. We've since expanded to include 4 core product offerings.
Orbital - Yield Optimizer: Parallax utilizes an advanced auto-compounding function to generate higher returns for both LP tokens and stablecoins
Andromedea - Multivariant Yield: Choose from our Bluechip Arbitrum vaults or our Degen vaults or even become a strategist and make your own
Supernova - Powering LSDfi: Earn recursive yields on leveraged liquid staking derivatives by borrowing against your assets
Black Hole - Liquidity Marketplace : Our POL marketplace allows anyone to create Olympus-style bond markets and for any Arbitrum token pair
2. What makes Parallax unique?
Our products are designed to generate yields, with Parallax creating structured products for yields and liquidity on Arbitrum and expanding to zkSync.
Product USP:
Orbital - these are single-strategy vaults, similar to Beefy. However, we've broken down Orbital strategies into lego-like an index strategy approach. This will create Andromeda's structured strategy vaults.
Andromeda - while fundamentally similar to Yearn, we allow users to customize their percentage allocation for each strategy. In v2, we will also allow users to take leverage on their positions, a feature not yet available in the market. Think of it like an index vault of strategies consisting of more than one strategy in a vault. Additionally, for Andromeda, we will have two types of index vault strategies based on users' risk preferences: blue chip index vaults and Degen index vaults. The difference lies in the type of assets/strategies used in the vaults, thus providing different APYs.
Supernova - a Meta LSD strategy built on top of base layer and L2 LSD products. Think of Andromeda, but with a focus on LSD products. The development for these products is more complex than Orbital or Andromeda. In v2, we could introduce leverage possibilities.
Black Hole - a POL marketplace that aims to create sticky liquidity. No protocol of such exists on Arbitrum yet. We are building the structured vault products first, then focusing on developing Black Hole. We aim to add innovative features/mechanisms that would set us apart from current POL protocols. The focus for full-fledged development will happen when the other 3 products are deployed.
The advantage of these products is that they can work hand-in-hand with the objective of creating sticky liquidity within the Parallax ecosystem for our partnering protocols. Users can suggest vault strategies, we will build them, and users earn a perpetual strategist fee. Additionally, the team and product is constantly evolving as we want to stay on top of narratives. We are always open to ideas and feedback on how we can incorporate innovative features.
3. What is Parallax product roadmap?
Refer to the technical roadmap section here
4. What are Parallax revenue streams and fees?
Orbital Fees
9.05% performance fees broken down into:
6% goes to PLX stakers
2.5% sent to treasury
0.05% sent to harvest caller
Future Products
All future products will be built with token fee capture as the goal.
5. What is Parallax marketing and/or engagement strategy?
We work closely with our advisors to lend credibility as well as great ideas to the project. Simultaneously, create content and provide valuable advisory to the team.
Work alongside CT influencers, including regional ones, to spread the word about Parallax by writing long-form and short-form threads, posts, retweets, and quote retweets.
Generate high-quality content, including blog posts, articles and infographics, combined with community activities, to educate potential users about Parallax.
Create a referral program to incentivize existing users to invite their friends to join Parallax (in-progress).
Partner with well established DeFi protocols for community support, co-marketing and product integration.
Offer incentives to each program to attract new users. Currently, all alpha testers/despositors would be incentvized. Future programs or events such as open beta, public sale, LPs, vault deposits, and partner integration will be incentivized as well.
Participate in partner’s AMA such as protocols, DAOs, and alpha groups to engage with potential users.
Create a community on Discord to engage with potential users and provide customer support.
6. What technologies did Parallax created and used?
We’ve developed our structured strategy approach for our Andromeda and integrating aspects of LSD assets for our Supernova.
An advanced auto-compound module for Orbital. Also exploring automation with Gelato Network.
Our gas-optimized swap and bridge module uses Multichain's anyCall cross-chain messaging router.
We have created a Zap routing module for single-strategy and more complex multi-strategy structured vaults. It allows for fully customizable allocation and is available for Orbital, Andromeda, and Supernova.
Our one-click swap feature allows for base assets to be swapped into 2-3 protocols in one gas-optimized transaction.
We build composable, yield-bearing, and transferable ERC721 NFTs to represent vault positions. Due to the unique nature of each product, their smart contracts differ.
In the later roadmap we will have LayerZero multi-chain integration that would allow Parallax’s structured strategies to go omni chain so users can deposit from any chain using any asset and likewise able to withdraw from any chain with any asset. More customizability here.
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