Parallel Protocol (Parallel & ParaSpace) — Shutdown and Full Liquidation Notice
Publication Date: August 5, 2025

Thank you for supporting Parallel V2, ParaSpace V1, and our NFT and ERC-20 lending products on Ethereum mainnet, Arbitrum, and zkSync. In the six-month sunset notice issued in January 2025, we set an official shutdown date of August 1, 2025. That date has passed. To ensure smooth liquidity exits for all lenders, we are now entering a full liquidation phase and will activate the measures below within the next two weeks.

1. Scope and method of liquidation
- Assets covered: all NFTs and ERC-20 tokens on the platform, including accounts with no open loans
- Networks: Ethereum mainnet, Arbitrum, zkSync
- Mechanism: the standard Dutch-auction liquidation flow used by Parallel NFT Lending will continue

2. Parameter and mechanism changes
These changes will roll out in stages over the next fourteen days and take effect immediately once deployed.
- Borrow APY sharply increased
- Lender APY disabled; new interest flows into the liquidation pool
- Reserve ratio may rise up to one hundred percent
- Loan-to-value and liquidation thresholds lowered across the board
- Liquidation bonus adjusted dynamically; exact numbers announced via official channels
- Contract upgrades or migration to centralized custody may occur if needed

3. Key timeline
- Asset-liquidation window: main liquidation expected to finish three to five days after new parameters go live
- Withdrawal window: fourteen-day period opens after liquidation for lenders and LPs to withdraw balances
- Final shutdown: relevant smart contracts permanently disabled after the withdrawal window closes

4. Action checklist
- Borrowers: repay outstanding debt or add collateral as soon as possible
- Lenders: withdraw funds within the withdrawal window

Over the past years we have explored the frontier of NFT-backed credit markets with our community. A strategic shift now leads us to conclude this chapter in the way that best protects user interests. We appreciate your trust and understanding and look forward to meeting you again in future products and collaborations.

The Parallel Protocol Team
August 5, 2025

平行协议（Parallel & ParaSpace）停运暨全面清算公告
发布日期：2025 年 8 月 5 日

感谢您长期以来对 Parallel V2、ParaSpace V1 以及其在以太坊主网、Arbitrum、zkSync 上多链 NFT 与 ERC-20 借贷业务的支持。根据 2025 年 1 月发布的六个月停运预告，原定 2025 年 8 月 1 日关闭日期已到。为保障所有出借人的流动性退出，我们将立即进入全面清算阶段，并在未来两周内启用以下措施。

1. 清算范围与方式
- 资产范围：平台上全部 NFT 与 ERC-20 资产（包括无借贷记录的账户）
- 网络覆盖：以太坊主网、Arbitrum、zkSync
- 清算机制：沿用 Parallel NFT Lending 现行流程，继续采用荷兰式拍卖

2. 参数与机制调整
下列调整将在未来十四天内分阶段生效，部署完成后立即执行。
- 借贷利率大幅上调
- 出借人利率关闭，新利息全部归入清算资金池
- 储备金比率最高可升至一百百分比
- LTV 与清算阈值统一下调
- 清算奖励将根据市场深度动态调整，数值另行公布
- 视需要进行合约升级或中心化托管

3. 重要时间线
- 资产清算期：参数生效后约三到五天完成主要清算
- 提款窗口：清算结束后开放十四天，供出借人与流动性提供者提取余额
- 最终关闭：提款窗口结束后，相关合约将永久停用

4. 操作指引
- 借款人：请尽快还款或补充抵押
- 出借人：请在提款窗口内完成资金提现

过去几年，我们与社区共同探索了 NFT 抵押与链上信用市场的边界。因战略调整，我们选择以最大限度保护用户利益的方式结束本阶段。感谢您的信任与理解，期待在未来的新产品与合作中再度相见。

平行协议团队
2025 年 8 月 5 日