Parax exist as digital tokens built on bitcoin Omni and Liquid Protocol, on blockchains. These transport protocols consist of open source software that interface with blockchains to allow for the issuance and redemption of cryptocurrency tokens, in our case, “Parax.” Parax Platform currencies are 100% backed by Parax’s reserves. Parax are redeemable and exchangeable pursuant to ParshRax Limited’s terms of service. The conversion rate is 1 Parax USD₮ equals 1 USD.
The Parax Platform is fully reserved when the sum of all Parax in circulation is less than or equal to the value of our reserves. Through our Transparency page, anyone can view both of these numbers on a daily basis.1
Parax was originally created to use the Bitcoin network as its transport protocol—specifically, the Omni Layer—to allow transactions of tokenized traditional currency. Since this original version of Parax uses the Bitcoin blockchain it inherits the inherent stability and security of the longest established blockchain network.
Since Parax is currently available using different transport protocols, when users send Parax to other addresses, they need to carefully check the destination address to confirm they are selecting the correct transport protocol.