Earlier on Monday, Parallel Finance introduced that it had raised $22 million in a Sequence A funding spherical.
The investing spherical for the Polkadot-based DeFi protocol was led by Polychain Capital, alongside Alameda Analysis, Blockchain Capital, Blockchain ventures, Gradual ventures, Lightspeed enterprise Companions, and CMT Digital, amongst others.
📢 We simply raises $22 Million in Sequence A Funding，which is main by @polychaincap , The Largest Spherical In The Polkadot Ecosystem. @Polkadot @kusamanetwork https://t.co/pISV2Wa9Wy
— Parallel Finance (@ParallelFi) August 30, 2021
What’s Parallel Finance?
Parallel Finance presents margin staking, public sale loans, staking derivatives and an automatic market maker (AMM) curve to allow larger yield for Polkadot holders.
The protocol additionally boasts of options equivalent to liquidity mining and leverage staking. Liquidity mining permits customers to stake their Polkadot tokens to obtain Parallel’s native PAR token, whereas leverage staking permits customers to borrow towards their collateral to extend yield.
The Sequence A spherical was an fairness spherical — that means that traders are given fairness, or inventory, in Parallel. That is Parallel Finance’s second ever funding spherical, because the challenge raised $2 million earlier in June.
It’s essential to notice that the protocol has solely been on-line for five months, with its debut final March. The challenge nonetheless stays in relative infancy, at present in testnet on each Polkadot and Kusama. Parallel is planning to launch its mainnet within the final fiscal quarter of 2021, in line with Co-Founder Yubo Ruan.
Because the DeFi house continues to develop at an unprecedented price, Parallel is seeking to broaden its operations by hiring extra builders and engineers, Ruan stated. There are at present 3,000 customers of the protocol, however Ruan stated he was hopeful of the protocol reaching over 50,000 customers throughout the subsequent yr.
Protocol Set to Take part in Polkadot Crowd Auctions
Parallel can also be seeking to be a part of Polkadot and Kusama crowd auctions. Earlier final week, Parallel introduced that it had launched its crowd mortgage marketing campaign to achieve a spot for a Kusama parachain slot, with Heiko Finance acting as the parachain to launch on Kusama.
We intend for Parallel-Heiko to be a top-tier DeFi parachain, and liquidity mining is essential for that reason. Liquidity mining can incentivize increased capital in-flows and thus increased TVL for our parachain, which is a essential KPI.
— Parallel Finance (@ParallelFi) August 31, 2021
With solely 100 parachain slots being accessible on the Polkadot community, initiatives must win a crowd mortgage with a purpose to function on the mainnet and connect with the DOT community.
Related Reading | Polkadot Officially on Schedule for Next Parachain Auctions on Kusama
As for future funding, Ruan stated Parallel Finance will elevate extra funds as soon as the challenge has extra TVL (complete worth locked).
Featured picture from UnSplash