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ParaSpace Lending V1

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anchored·37FYEH…MhpX

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 entities
Organizations
□ParaSpace Lending V1
Relationships
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    Timeline(10 events)

    12 December 2022

    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.

    17 March 2023

    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.

    18 March 2023

    ParaSpace confirms all user funds secured. Protocol remains paused pending additional security audits. Large-withdrawal time-locks implemented.

    10 May 2023

    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.

    12 May 2023

    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.

    19 May 2023

    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.

    August 2023

    ParaSpace announces merger with Parallel Finance to form ParaX, a 'Web3 super app.' Combined TVL at announcement exceeds $250 million.

    4 September 2023

    User migration from ParaSpace to ParaX begins.

    December 2023

    Merged entity rebrands from ParaX to Parallel Finance, refocusing on DeFi expansion including liquid staking and Layer 2 solutions.

    27 May 2026

    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.

    Provenance & Audit Trail
    Anchored on SolanaVerify on-chain9 Wayback Archivessrc:defillama

    Decision Log

    This investigation is cryptographically anchored to the Solana blockchain (1 event). 9 of 16 cited source URLs have an Internet Archive snapshot.

    full audit log →version history →

    model: claude-sonnet-4-6

    generated: 5/4/2026, 2:54:43 AM

    last updated: 8/30/2026, 5:14:11 AM

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