Section 1Abstract

Decentralised lending has proven that permissionless credit works at scale. The prevailing model, however, prices debt on a utilisation curve, which produces an unpredictable borrowing environment: rates move after a position is opened, debt compounds while it is held, and a borrower's total cost depends on the behaviour of everyone else in the pool.

Parkour Finance proposes a different structure for lending on Base. Variable interest is replaced with a flat, one-time initiation fee charged when a vault is opened. After that moment the debt is static. Protocol revenue, denominated in USDC rather than in the native token, is redistributed to participants who stake $PRKR. The result is intended to be a borrowing experience where the number quoted at the start is the number owed at the end, regardless of how long the position is held.

Section 2Introduction

2.1 The problem with variable-rate lending

Established lending platforms set interest algorithmically from pool utilisation. When borrowing demand rises, rates rise with it — including on loans already outstanding. This is deliberate: higher rates attract deposits and ration scarce liquidity. It also means a borrower cannot know the cost of a loan at the time they take it.

The practical consequence is that a leveraged position becomes something to be actively managed. Interest accrues continuously and compounds into the debt, steadily eroding the collateral ratio even when the collateral price has not moved. In volatile markets a utilisation spike can push an otherwise healthy vault toward liquidation without any change in the underlying asset.

2.2 The 0% interest model

Parkour Finance is designed to remove the time dimension from debt entirely. A user deposits a supported asset as collateral and borrows USDC against it. A single initiation fee — a target of 0.5%, reducible to 0.1% for stakers — is added to the debt at the moment the vault opens. From then on the balance does not grow.

This is not free money. The fee is real and is paid up front rather than spread over time. What changes is predictability: a borrower knows the full cost before committing, and a position held for three years costs exactly what one held for three days costs. Revenue that would otherwise accrue as interest is instead collected once and redistributed to stakers.

Section 3Protocol architecture

3.1 Base network

The protocol is intended for deployment on Base, an optimistic rollup incubated by Coinbase that settles to Ethereum. Base has become the dominant venue for Layer 2 DeFi activity, holding roughly 46% of all L2 DeFi total value locked as of May 2026, with Base and Arbitrum together accounting for more than three quarters of the category.

Three properties matter for this design:

• Transaction cost. Sub-cent fees make it economic to run liquidation checks and vault operations on-chain rather than pushing them off-chain.
• Settlement speed. Fast confirmation lets the liquidation engine act before a falling market opens a bad-debt gap.
• Native USDC depth. Base carries deep native USDC liquidity, so the protocol can avoid bridged representations entirely.

3.2 Vault mechanics

A vault will follow four steps:

1. Deposit collateral. A supported asset is locked into an isolated vault contract.
2. Borrow. USDC is drawn against the collateral, up to that market's loan-to-value limit.
3. Fee applied once. The initiation fee is calculated on the borrowed amount and added to the debt at opening.
4. Repay and withdraw. The borrower repays principal plus that fee and reclaims the collateral.

No time-weighted function is applied to the balance between step three and step four. The debt figure written at opening is the debt figure owed at closing.

3.3 Liquidation and the stability pool

Collateralised lending requires a mechanism for positions that fall below their required ratio. Rather than a gas-heavy Dutch auction, Parkour Finance intends to use a pre-funded stability pool.

• Liquidity providers deposit native USDC into the pool ahead of time.
• When a vault's collateral ratio drops below the minimum, anyone may call liquidate(). The required USDC is drawn from the pool and the vault's debt is cancelled immediately.
• The liquidated collateral is distributed to pool depositors in proportion to their deposits, at a discount to market price. That discount is their compensation for providing the backstop.

Because the capital is already in place, liquidation does not depend on finding a buyer during a sell-off — the failure mode that produces bad debt on auction-based systems in fast markets. The trade-off is that the pool must be deep enough to absorb the liquidations that actually occur, which is why stability pool deposits carry boosted $PRKR incentives.

3.4 Isolated markets

Each market will pair exactly one collateral asset against one borrowable asset — a cbBTC and USDC market kept entirely separate from an ETH and USDC market, with no shared collateral pool between them.

The purpose is containment. If a collateral asset depegs or its price oracle fails, losses are bounded by that single market and cannot drain liquidity elsewhere in the protocol. The cost of this choice is capital efficiency: liquidity cannot be reused across markets, so each must be seeded independently.

Section 4Tokenomics

4.1 Supply

Supply is capped and no burn or transfer-tax logic is planned. This is a deliberate choice against engineered scarcity. A fixed supply keeps accounting deterministic, and burn-on-transfer tokens are routinely rejected by the vault and DEX contracts the protocol needs to integrate with.

4.2 Utility and real yield

Protocol revenue arrives as USDC from initiation fees. That revenue is intended to be redistributed rather than used to buy back and destroy supply, so returns to stakers are denominated in stablecoins and tied to actual protocol usage rather than to token emissions.

• Fee discount. Staking $PRKR is intended to reduce the vault initiation fee from 0.5% toward 0.1%.
• Revenue share. A portion of collected initiation fees is intended for distribution to stakers in USDC.
• Stability pool boost. Depositors backstopping liquidations earn $PRKR emissions on top of their share of liquidated collateral.
• Governance. Token holders are intended to vote on collateral onboarding, loan-to-value limits and fee parameters.

All four depend on the protocol being live and generating fees. Until mainnet launch, $PRKR has no fee revenue to distribute and no parameters to govern.

4.3 Allocation and vesting

Section 5The Community Run

Ahead of contract deployment, Parkour Finance is distributing $PRKR through a Telegram Mini App. Participants complete social tasks, check in daily, invite others, and submit a Base address. Activity earns points recorded off-chain against a Telegram account.

5.1 Points are a share, not a quantity

Points are not tokens and do not represent a fixed token amount. A fixed pool of 300,000,000 $PRKR is set aside for season one, and each participant receives a share of it proportional to their points:

The ceiling matters in both directions. If participation is low, the cap binds and every runner receives exactly the amount advertised, with the undistributed remainder returning to the treasury allocation. If participation is high, the ratio falls and the same pool is divided further. The protocol cannot promise more tokens than exist in the pool, and this structure is what makes that guarantee hold without capping signups or changing rewards mid-campaign.

5.2 Distribution and vesting

The point ledger is frozen at snapshot. Allocations follow the community bucket's vesting terms: 20% unlocks at the token generation event and the remaining 80% releases linearly across the following six months. A participant who receives 9,000 $PRKR sees 1,800 at TGE and roughly 1,200 per month thereafter, with the final portion arriving in mid-2027.

5.3 Integrity measures

• One Base address can be linked to exactly one Telegram account, enforced at the database level.
• An address is locked permanently once submitted.
• Referral rewards pay once per referred account and self-referral is rejected.
• Telegram channel membership is re-verified continuously through the Bot API, with a full pass immediately before snapshot. Points for a task are removed if the account has left.
• Accounts without a Telegram username are excluded.

One limitation is worth stating plainly: Telegram does not expose account creation dates through its Bot API, so account age cannot be verified directly. The protocol approximates it using the sequential nature of Telegram user IDs, which filters newly created accounts but is a heuristic rather than a guarantee.

Section 6Security

No Parkour Finance contract has been audited, because no Parkour Finance contract has been written for production. The following is the intended process before any user funds are at risk.

• Token contract audit. The $PRKR ERC-20 will be audited independently before deployment, ahead of the token generation event. This contract holds the community allocation and is separate from the lending protocol.
• Protocol audits. The vault, liquidation engine and stability pool will undergo independent review by established security firms before mainnet.
• Public testnet. A Base Sepolia deployment will allow open testing of borrowing and liquidation before real capital is accepted.
• Bug bounty. An incentivised programme will run alongside the testnet.
• Formal verification. Critical liquidation logic is a candidate for formal methods, subject to scope and cost at the time.

Audits reduce risk. They do not eliminate it, and no audit should be read as a guarantee that a contract is safe.

Section 7Roadmap

Dates are targets. Audit findings can move anything scheduled after them.

Section 8Technical appendix

8.1 Debt calculation

Total debt is fixed at the moment of opening:

No further function is applied to this value over time. This is the structural difference from utilisation-curve lending, where debt is a function of both principal and elapsed time.

8.2 Collateral ratio

Vault health is measured against oracle-reported collateral prices:

When CR falls below the minimum collateral ratio for that market, the vault becomes eligible for liquidation. Price feeds are intended to come from an established decentralised oracle network; oracle failure is a live risk in any collateralised lending system and is one reason for the isolated market design in section 3.4.

8.3 Native USDC

The protocol is designed around native USDC on Base rather than bridged representations, removing the custody and depeg risk that wrapped stablecoins carry. For larger inbound transfers, Circle's Cross-Chain Transfer Protocol burns and mints native USDC directly across chains; the current version supports per-transaction limits of up to $10 million, raised from $1 million in the previous version.

8.4 Collateral assets

Initial markets are planned for ETH and cbBTC, Coinbase's wrapped Bitcoin representation on Base, which allows borrowing against Bitcoin exposure without leaving the network. Additional Base-native collateral including cbETH and AERO is intended to follow through governance rather than unilateral listing.

Section 9Risks

Anyone deciding whether to participate should weigh the following. This list is not exhaustive.

• The protocol does not exist yet. Everything in sections 3, 4.2 and 6 is design intent. It may change substantially, be delayed, or not ship at all.
• Points may be worth nothing. Their value depends on the token generation event happening and on $PRKR having a market. Neither is guaranteed.
• Allocation is not fixed. Because payout is proportional, a participant's final token amount falls as total participation rises and is not known until snapshot.
• Vesting is long. Only 20% of a community allocation unlocks at TGE. The remainder arrives across six months, with the final portion in mid-2027.
• Smart contract risk. Audits reduce the chance of a critical flaw but do not remove it. Lending protocols have historically been a frequent target.
• Liquidation risk. A 0% interest rate does not mean no liquidation risk. Collateral can fall in value, and a vault below its minimum ratio will be liquidated.
• Oracle risk. Collateral ratios depend on external price feeds. A stale or manipulated feed can trigger wrongful liquidation or permit undercollateralised borrowing.
• Team anonymity. Parkour Finance is developed anonymously. Participants have no recourse to a named legal entity.
• Regulatory risk. Treatment of tokens and lending protocols varies by jurisdiction and continues to change.

This document is not an offer to sell securities, a solicitation, or investment advice. It is a technical description of an intended system. Digital assets carry risk including total loss of capital.