The IQ Protocol is a completely new model: risk-free, collateral-less renting of digital assets for the utility and the use of anything. No one has really done this before. So, it has a first-mover advantage. In this Parsiq IQ Protocol article, we tried hard to explain some basic issues simply, maintaining the quality. We attempted to recount why IQ Protocol is one of the most undervalued crypto products in the whole crypto industry. We also depicted why this IQ Protocol model is well compatible with both crypto and traditional sectors. And, this compatibility comes from the innovative mechanism indeed. Furthermore, we highlighted the opportunities and possibilities of IQ Protocol in this article. Let’s begin by the definition of IQ Protocol.
What is IQ Protocol?
By definition, IQ Protocol is a risk-free, collateral-less solution to tokenize subscriptions. Why is it said risk-free? The reason is that it is not necessary for borrowers to keep any security for enjoying the service. Yes, this is the innovation of Parsiq. Parsiq team transformed the oldest form of subscription is the newest and unique form, and access to that subscription is controlled via the project’s token. In the operation process of business, they added a new dimension.
Among the core developers of Parsiq, the names of Anatoly Ressin and Alan Durnev come first. The former one is serving Parsiq as a Chief Architect and the latter one as a CTO.
Parsiq IQ Protocol Statistic Data
|Liquidity Token||PRQ (Parsiq)|
|Total Borrowed||10,794,585 PRQ|
|Liquidity Pool||19,094,385 PRQ|
Why is the IQ Protocol created?
Suppose; you have come up with an innovative service in the crypto industry, which is quintessential to Crypto users. They will use your service for their sake. And so, you are thinking that your crypto project will be 100% successful. If so, then it is your mistake. Because only your innovative crypto service doesn’t guarantee your success.
Do our talks seem peculiar? Then, let us give you a real example to comprehend you.
- Suppose; the issue of ETH high gas fee is the highly pronounced problem among other problems in the crypto market. So, you came up with such a crypto platform that allows people to transact ETH with a not-so-high fee, which is unlike the current fee model. It means people can swap ETH with a low fee. It’s quite natural that the entire crypto community will grab the chance.
- But you did one thing! You founded tokenomics based on BTC, ETH, and fiat. Thus, you failed to understand Crypto users through your tokenomics that why they will hold your project.
- The consequence will be like no one will hold your token even though you have a huge number of Crypto customers. It’s because no one is holding your Crypto project token for using your service. They are easy to use your service without using your token.
- Still, there are so many popular projects in the Crypto market, which have a huge customer base but lack utility in their token just because this part of crypto tokenomics is missing in their projects. That is the reason their tokens cannot see any increment in their token price.
Now come to the relevance of Parsiq. There is no doubt about the innovative technology of Parsiq, is there? Even with the large Crypto tokenimics, this part was missing in Parsiq tokenomics. Why Parsiq holders and users will use PRQ tokens? What benefits will it carry to them? But the IQ Protocol is really overlapping the missing part.
On the other hand, suppose; you would like to monitor 1 million blockchain addresses using the Parsiq service. For so, you need 1M Parsiq token. If Parsiq token’s price is at 1$, you will need 1M USD to monitor that amount of addresses. No one will then use this owing to its high cost.
But now, Parsiq users can enjoy this service at a low cost through IQ Protocol. To be specific, by the time we were writing this Parsiq Staking-related article, you would need to spend only 24K PRQ for 1M Parsiq token storing for two months. This high cost-shifting from 679224$ to 16274$ has become possible just because of the IQ Protocol. So, you hopefully understood- how easy Parsiq service use has become due to IQ Protocol?
Alongside, Parsiq holders believe in Parsiq tech, but they are not concerned about Parsiq service. If they want, they can earn passive income lifelong by staking Parsiq. So, the IQ protocol is the combo pack of Parsiq’s utility token, supply, and demand.
History of IQ Protocol
- Parsiq team disclosed their first 2.0 Tokenomics on 29 October 2020, where the name of IQ Protocol was first uttered. Notably, the IQ protocol was initially known as O2 Protocol. There were elaborations about- how will lenders and borrowers use pool tokens in Parsiq 2.0 Tokenomics? How will they enjoy the service of the IQ Protocol?
- Then, they released the full model of IQ Protocol on 11 December 2020, in which, ‘’Threemium model’’ was first to come into sight. This ’Threemium mode of Parsiq is the combination of a free model, a premium model, and a Hodlium model. On the same day, they shared the idea of iPAQ, qPRQ, and NFT tokens.
- Then Parsiq team disclosed the project update on 3 May 2021. Regarding IQ Protocol, Parsiq said, ‘’ our developers are immersed in testing the protocol, and very soon the audit and UI/UX along with final touches will be held.’’
- Mysterium Network will soon adopt Parsiq’s new IQ Protocol- announced by the Parsiq team on 28 June 2021.
- Parsiq launched their IQ Protocol on the mainnet beta version of Binance Smart Chain, where lending could be done automatically, but so wasn’t in the case of borrowing.
- A User Borrowing and Decentralized PARSIQ Subscription Live option was integrated into IQ Protocol on 27 August 2021.
There will be the integration of SWAP FEATURE and HODLIUM MODEL in the not-so-distant future.
How Does the IQ Protocol work?
Between two types of users of any crypto token, 1 type of user is interested in token utility. These typed people are highly concerned about the utility of the token, and they never hanker after volatility. Traders/holders are another type of crypto token user. They are not interested in the features of this platform. They always rack their brains about the volatility and non-volatility factor. As volatile tokens lead to quick earning opportunities, they prefer volatile tokens volatility of crypto tokens.
Seeing these two-typed users, you can understand they have reverse mottos. For example, service users want to enjoy services at a stable price, and contrarily, traders or investors prefer market volatility.
So, what’s the solution?
- Yeah, it’s the IQ Protocol.
Now the question is- What major problem does IQ Protocol solve?
(Since Parsiq pioneered the IQ protocol as a first company, we are taking Parsiq as an example here. We hope this will help readers in understanding the working mechanism of IQ Protocol well. )
- Investors who have the ability to lend are allowed by the IQ Protocol. If you have PRQ token in your hand, you can go to the protocol and then lend your token to those Parsiq customers who want to use them by borrowing at a low cost.
- At lending your Parsiq in IQ Protocol, you will receive iPRQ, where ‘’I’’ stands for investment. iPRQ is a kind of certificate representing the amount of lending, time of lending, and many more details. It is an NFT token.
- At the time of withdrawing from IQ Protocol, basically, you withdraw your iPRQ. This iPRQ is equal to the same amount of Parsiq token you deposited in the IQ Protocol. You will also receive some interest as you held your token in the IQ Protocol for some days.
- On the other hand, borrowers are not borrowing PRQ themselves. Suppose; he/she says I want to borrow 1M Parsiq for one month and also says he/she doesn’t need that for more than one month. According to his/her plan, when he/she goes to the borrowing section in the IQ Protocol and selects what kind of blockchain service they prefer and then clicks on the ‘’BORROW’’ button, the IQ Protocol immediately creates an NFT token namely qPRQ. It’s a matter of fun that this token is expirable.
- qPRQ s destined to get vanished at a certain time. In fact, it is tracked by two different tokens; one is BSC token which depicts your balance and another one is NFT token which get expired.
- The expiry featured qPRQ token is one of the reason behind completely collateral-less borrowing and risk-free. That means you are not required to put any collateral in the IQ Protocol as the token is destined to expire. qPRQ is acceptable for holding in the IQ Protocol for paying.
- One needs to figure out how much cost is needed for 3M tokens after going to the borrowing section of IQ protocol when one needs 3Million tokens for one month. Notably, the amount of Parsiq a user needs to give as a cost fee is live Parsiq, not NFT token. Suppose; 30K PRQ is needed for a 3M token for 1 month service, and for so, a borrower is required to put the service cost 30K PRQ into the IQ Protocol, and this 30K is exactly the interest of the IQ Protocol lenders.
- The required amount that borrowers pay as a service cost, the aforementioned 30K; that amount will not be available immediately after paying to the IQ protocol, as users can rethink and set back. So, you are able to return earlier than one month. And if you do so, you will receive only the portion that you have not used.
So, IQ Protocol develops a true banking system in the blockchain industry this way, where no cheat can take place.
How does IQ Protocol benefit companies?
- With the blessing of the IQ Protocol, Crypto and non-crypto companies can now converge into the same solution for fulfilling their respective purposes. For this reason, companies first need to figure out by thinking: how can such solutions be turned into a subscription model? Suppose: in Vehicle sharing business- how about a token that enables the holder to unlimited access to the company’s vehicle? And in a Pastry shop- what about a token that gives the token holder first access and right to purchase the latest Pastry imports? The possibilities are endless.
- The existence of subscription-based business models has been in the traditional business industry for so long. But, still, this subscription model is missing in the blockchain industry. So, any blockchain company using this subscription model of IQ protocol at a low cost can gather a massive customer base in their crypto project.
- As the IQ protocol is prosperous with the qualities of stability, speed, lowered barriers to entry, and reduced costs, companies feel no worry about exchange rate while accepting global currencies.
- Tokens are receiving lifetime value from the leveraging of companies and also these tokens pleasing its stakers and lenders with passive earning opportunities. They also benefit service providers and consumers in many ways like merging the best of DeFi with the flexibility of SaaS business models.
- The IQ Protocol model leads companies to enjoy multifarious revenue streams by getting different types of goods from the protocol and offering these products to different customer bases.
- This revenue stream unlocking is possible as the IQ protocol allows companies to produce uniquely tailored offerings to a potential customer, who isn’t fully committed to a company’s product yet.
- The use of tokens has drastically increased as companies are utilizing the IQ protocol solutions. And consequently, these tokens are receiving lifetime value. Releasing these tokens into the marketplace creates its availability for customers.
- There are so many crypto projects in the crypto industry whose products are of high value, but their tokens are of less value. So in that case, IQ Protocol can help these tokens to obtain value. Use-cases are essential for a token to earn significance indeed. Underutilized tokens in circulating supply are also having the opportunity to be utilized by companies because of the IQ Protocol.
For deploying the IQ protocol, 20 companies are hand in glove with Parsiq. There will hit a storm in the crypto industry when Crypto projects come to know the usefulness of IQ Protocol, and it’s something like bridging crypto users.
How does IQ Protocol benefit Token Holders?
Briefly saying, you have two options when you hold IQ Protocol-backed token;
- Staking rewards
- Hodlium model.
- Staking rewards: The number of traders in the Crypto market is not small, and a huge number of crypto communities are involved with trading. Actually trading from afar seems easy, but things are not like this. You can win out in our first 2 or 3 trades, but constant profit-making is impossible. Do you know? More than 90% of the traders in the world are losing their money while trading. Now understand- how hard regular profit-making is through trading? If you want to earn money consistently without any complexity-
Then Parsiq’s made IQ Protocol can be a piece of felicitous news for you. Yes, you can enjoy a 5% yearly return by staking PRQ through their IQ protocol. And it also can be something more than that. This is the magic of decentralized finance.
- Hodlium model: You can enjoy the services of the project without hindrances by holding IQ Protocol-based tokens. This token hold theory guarantees your lifelong service acceptability. Just imagine- you are an owner of a crypto trading firm. You can hardly track the unlimited blockchain data, but you can enjoy this service for free through their reverse oracle service by holding PRQ in the IQ Protocol. Exactly, you don’t even need to spend any money on this service. And that’s the beauty of the IQ Protocol.
What is the future of the IQ Protocol?
By the time we were writing this Parsiq IQ Protocol article, the amount of PRQ added to the liquidity pool was nearly 20% of the total circulating supply of Parsiq, which is really impressive. On the other hand, PARSIQ’s working with twenty companies in deploying IQ Protocol refers to the smooth opening journey of the protocol.
- But, what is the real future of the IQ Protocol?
Upon looking at the crypto market, you will see most of the crypto projects are with utility tokens models. They offer you some kind of access, some kind of rights; and frankly, they provide utility. Our talks will go in vain if we leave talking about NFT projects. NFT projects badly need some token utility-based models like IQ protocol, from which NFT service users can keep borrowing in a risk-free way. Factually, maximum NFT projects ensure types of rights and access through their services, which are relatively costly. It goes without saying that if something like the IQ protocol is implemented in the NFT space, the price will get reduced to a high extent. So far what we have heard is Parsiq is having interest from some NFT projects about IQ protocol.
The use of IQ protocol is not only confined to the crypto world but also the traditional business world. The reason is we will see tokenized models of real-world business in the near future where the IQ protocol can be applied to get liquidity, fundraise on a global level, and directly tie to demand this business services, goods to the demand for the token.
In the future, there is a good likelihood of the IQ Protocol having its own governance token (IQ Token): but it will happen only after the IQ Protocol has sufficient traction and TVL (kind of how Uniswap and Compound did). This is very much likely to happen. If you are an early user of IQ protocol, then so far, we heard that the Parsiq team is going to roll out a special incentive for their early users.
We believe in the fruition of IQ Protocol as it is solving such a problem that is quintessential to both the crypto industry and the traditional business sector. IQ Protocol is gradually returning lively laughter in the face of service providers through reducing the service cost to a high extent. Consequently, service providers will see a high influx of busy customers that will increase their revenue several fold. If you ask us to say in a word- why will the IQ Protocol succeed? We must say IQ Protocol is naturally creating a win-win situation for service providers and service users. This innovative coup will bring success for Parsiq IQ Protocol.