Replace backing
Accept replacement collateral before releasingthe original.
Collateral & settlement
Expand what collateral can support.
PAR coordinates the rights and obligations attached to collateral, so compatible financial relationships can work together and evolve over time.
How PAR makes it possible
Financial rights stay connected as the arrangement changes.
Transfer a claim
The claim transfers against payment. The borrower’s loan continues.
Settle an obligation
Discharge the paid obligation. Release only collateral no longer required.
Use cases
Settlement guarantee
Back trade settlement with independent guarantees.
A trading venue needs financial backing if a participant fails to settle.
An independent writer commits funds. On a valid draw, PAR links payment to the writer’s reimbursement claim against the participant’s collateral.
OutcomeThe venue can arrange backing without supplying all the credit itself.
Productive LP collateral
Borrow against liquidity that keeps working.
An LP owner needs funding while keeping liquidity deployed.
The proposed PAR Spoke connects Aave lending liquidity to repayment and recovery rights over the controlled LP position.
OutcomeThe position supports financing while permitted liquidity activity continues.