Why the US Government Shutdown Is a Canon Event for Bitcoin and Crypto

The US government shutdown, which began on October 1, has become a canon event for Bitcoin and crypto. Since the US government shutdown began, Bitcoin and the broader crypto market have rallied, with BTC reaching a new all-time high (ATH) above $125,000. Meanwhile, Paydax Protocol (PDP) has also benefited from the US Government shutdown alongside Bitcoin and the broader crypto market

Increased Demand For The Paydax Protocol (PDP) Token

The Paydax Protocol (PDP) token presale, which is selling at $0.015 per token, has witnessed an increased demand since the US government shutdown began. This has followed the increase in Bitcoin and other crypto prices as investors look to maximize their holdings by unlocking new capital to take advantage of the current bull run, sparked by the US government shutdown.

Paydax has become the go-to lending and decentralized finance (DeFi) platform for market participants over other platforms like Aave, Compound, and MakerDAO. Paydax primarily stands out due to its broad collateral support. The platform supports the following assets as collateral for peer-to-peer (P2P) lending:

Blue-chip crypto like Bitcoin

Staked tokens

Governance tokens

Stablecoins

LP Tokens

Tokenized real-world assets (RWAs)

Borrowers’ Benefits On Paydax

Bitcoin and other crypto holders enjoy several benefits when borrowing on the Paydax Protocol (PDP) platform

Fixed interest rates between 5% and 7%

Transparent fee structures

Loan-to-value (LTV) ratio of up to 97% (up to $97,000 loan on a $100,000 collateral)

Unlocking liquidity from illiquid assets. For example, market participants can unlock liquidity with their watches, real estate, and jewelry

For Lenders, this is an opportunity to put idle cash during this US government shutdown to work and earn up to 12.5% annual percentage yield (APY). This is more than what they would earn by simply depositing their assets in a bank or other DeFi platforms

Protections For Both Borrowers And Lenders

Lenders and borrowers do not need to worry, as adequate protections are in place to safeguard their assets and ensure the successful execution of all loan transactions

Overcollateralized loans

Redemption pool to repay lenders in case of default

Onfido’s verification system is used to ensure borrowers are legitimate.

Brinks’ custody to safeguard the real-world assets

Sotheby’s ensures that all collateral is valued correctly

Chainlink oracles for real-time pricing of Bitcoin and other crypto assets

Immutable smart contracts verified by Assure DeFi

A Dox’d team with a proven track record in the finance space

A Simple Vault System For Instant Liquidity

Paydax Protocol (PDP) operates a simple vault system, which enables borrowers to unlock instant liquidity, thereby creating an excellent user experience. Users simply deposit their collateral in the vault and then gain access to stablecoins or other crypto assets like Bitcoin

The platform has automatic safeguards in place to reduce the risk of liquidations for borrowers. Meanwhile, these borrowers simply have to maintain a Health Factor above 1.0 to avoid liquidations

The PDP Token’s Utility

In addition to unlocking access to loans on the Paydax platform, the PDP token also boasts other use cases, including:

Governance

Staking rewards

Fee discounts

Revenue sharing, with 40% of fees earned distributed to PDP stakers

Stability pool rewards. Users earn PDP tokens by providing liquidity to protect the platform

APY Of Up To 41.25%

Paydax Protocol (PDP) token holders can also earn up to 41.2% APY through leveraged yield farming. These PDP holders can borrow additional funds with up to 5x leverage and then use them to farm DeFi projects that plan to airdrop tokens to their users. This feature enables users to size in adequately, making them eligible for up to six and seven-figure airdrops

In addition to the benefits that PDP token holders enjoy, there is also the ROI potential for holders, given that PDP is a new token with bullish fundamentals. Paydax is building the first fully on-chain financial system. As such, this presents an opportunity for them to bet on the platform’s success from the outset by purchasing the PDP token at a low entry price of $0.015

The first stage of the PDP token presale looks likely to end even before the US government shutdown ends. As such, time is of the essence to avoid having to buy the token at a higher price in the next presale stage, when it will be selling at $0.017. Market participants can use the promo code ‘PD80BONUS’ to receive an 80% bonus and a 5% bonus on every referral

Join the Paydax Protocol (PDP) presale and community:

Website ~ Telegram ~ X (Twitter) ~ Whitepaper

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