Parrot Protocol

About

The Parrot Protocol is setting out to make value locked in LP tokens accessible, by creating a liquidity & lending network collateralized by these LP tokens. Parrot created the PAI stablecoin which is collateralized by LP tokens or PRT, Parrot's token. Parrot also runs a stake pool which pays the liquid staking token prtSOL, and pSOL is their aggregate stake pool token similar to aSOL.

How to Create Parrot Assets

To acquire the PAI stablecoin, deposit collateral on Parrot. Note that the risks associated with this strategy are liquidation of collateral if it drops below a given percentage of the PAI debt, and the possibility of PAI losing its peg.

To acquire prtSOL, head to Parrot's staking page and deposit SOL. Parrot will deposit SOL with Solana validators and earn yield, which will be realized via appreciation of the pSOL token value. The main associated risk is that validators Parrot delegates to are malicious and have their funds slashed. As of December 2021, slashing is not yet implemented on the Solana mainnet.