Answer
Paraguay is not a guaranteed fast path to citizenship. Obtaining citizenship there is possible, but it is described as extremely difficult, not as a simple "residence plus passport" scheme.
Obtaining Paraguayan citizenship may require collecting signatures from a large number of judges. Therefore, simplified residency, an address, a deposit, or company registration do not in themselves mean a quick decision on citizenship. A complex procedure still lies between the right to begin the process and receiving a passport.
Fraudulent offers of fast-track citizenship are common in connection with Paraguay. Warning signs include a promise of a passport without residence or personal participation, a guaranteed timeframe regardless of the court or agency, an offer of fake stamps, or a refusal to identify the applicable legal provision and competent authority. Any such route should be scrutinized especially carefully.