ParaSpace Lending V1
Summary
ParaSpace Lending V1 was an Ethereum-based cross-margin NFT and fungible token lending protocol launched in December 2022. In March 2023, a price manipulation exploit targeting the AutoCompoundApe contract nearly drained $5 million (2,909 ETH) from the protocol; blockchain security firm BlockSec intervened in a white-hat operation to recover the funds. In May 2023, a separate internal governance crisis erupted when over 19 team members accused CEO Yubo Ruan of misappropriating approximately 1,454.5 ETH (~$2.7M) from the recovered funds, allegations Ruan denied. The protocol subsequently rebranded through a merger with Parallel Finance, forming ParaX in August 2023, while the original V1 contracts were wound down and remain at minimal TVL as of 2026.
Connected Entities
1 entitiesTimeline(10 events)
2022-12-12
ParaSpace officially launches as the first cross-margin NFT and fungible token lending protocol on Ethereum, backed by Sequoia Capital, Coinbase Ventures, Founders Fund, and Polychain Capital.
2023-03-17
Attacker exploits price manipulation vulnerability in the AutoCompoundApe contract, initiating a flash loan attack targeting 2,909 ETH. BlockSec's Phalcon system detects the attack in real time; BlockSec executes a white-hat version of the exploit and recovers the full 2,909 ETH. Protocol losses from slippage: 50–150 ETH (~$270,000 or less). ParaSpace pauses the protocol.
2023-03-18
ParaSpace confirms all user funds secured. Protocol remains paused pending additional security audits. Large-withdrawal time-locks implemented.
2023-05-10
Internal governance dispute becomes public. Over 19 team members publicly accuse CEO Yubo Ruan of misappropriating approximately 1,454.5 ETH (~$2.7M) of the recovered funds through EOA wallet 0x909. Co-founders Jay Yao and Thomas Schmidt lead the public accusation. Prominent commentators advise users to withdraw funds.
2023-05-12
Yubo Ruan publicly denies allegations, characterizes the 0x909 wallet as an operations and insurance wallet, and claims Yao and Schmidt unlawfully seized control of protocol multisig and social media accounts.
2023-05-19
Resolution announced. Jay Yao and Thomas Schmidt resign from ParaSpace. Both issue public apologies. Ruan remains CEO and gains sole authority over the protocol multisig wallet.
2023-08-01
ParaSpace announces merger with Parallel Finance to form ParaX, a 'Web3 super app.' Combined TVL at announcement exceeds $250 million.
2023-09-04
User migration from ParaSpace to ParaX begins.
2023-12-01
Merged entity rebrands from ParaX to Parallel Finance, refocusing on DeFi expansion including liquid staking and Layer 2 solutions.
2026-05-27
ParaSpace Lending V1 contracts remain deployed on Ethereum, ZKsync Era, Arbitrum, and Polygon with a combined TVL of approximately $115,000, indicating near-total user exodus from the legacy V1 contracts.
Decision Log
- hash: 31XE6s8J2i2yet6mzkSEh4HxPGYg3ANbYEDC9dQBHkJZ
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:43 AM
last updated: 5/28/2026, 3:59:59 AM
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