1.4 Overview of Parax

Parax is a decentralized liquidity network that transforms high value physical assets into on-chain financial primitives. The platform enables verified asset owners to tokenize and fractionalize their holdings, creating borderless access to capital markets. Leveraging a tiered authentication framework: ranging from AI image verification to insured custody vaults: Parax ensures integrity and transparency without compromising efficiency.

Key components include:

• Multi-tiered asset onboarding: Assets under $10K rely on AI + community consensus; $10K–$100K undergo expert validator inspection; $100K+ are stored in vaults via global custodians (e.g., Brinks, Loomis).

• Token architecture: Every asset is issued as a unique ERC-721 token with fractional ERC-20 derivatives, enabling both indivisible proof and divisible ownership.

• Marketplace liquidity: Once tokenized, assets can be listed in Parax’s native exchange layer, offered OTC, or composably integrated into lending pools.

By collapsing traditional barriers to verification, ownership, and liquidity, Parax transforms physical wealth into programmable, portable capital: redefining RWAs as an actively tradable asset class in the on-chain economy.