According to Odaily, Parallel Network has announced on platform X that it will be reducing the liquidation threshold of its NFT lending platform by 1% daily until it reaches the target value. For instance, the threshold for BAYC will be reduced from 80% to 65%, and for MAYC, it will be lowered from 70% to 65%. Parallel Network has warned users to be aware of the liquidation risk as this adjustment will impact the health factor of the loans.
Previously, Parallel Network had stated that due to recent fluctuations and downward trends in the NFT market, it would be adjusting the parameters of the NFT lending protocol to mitigate systemic risk.
