Institutional-grade lending protocol for DeFi Parallel Finance has successfully bagged the fourth slot in the Polkadot parachain auctions, an official press release states.
Parallel Finance Wins the Fourth Polkadot Parachain Auction
The competition is getting fiercer than ever in the Polkadot parachain auctions with the thinnest of margins separating competing projects aiming to bag a parachain slot on the high-performance, decentralized layer 0 platform.
The latest of the winners is Parallel Finance, a DeFi-focused institutional-grade lending platform backed by a list of reputable VC firms such as Sequoia, Founders Fund, Polychain, Lightspeed Venture Partners, Slow Ventures, Blockchain Capital, and Alameda Research.
In an announcement made on December 9, the Parallel Finance team stated it had won the fourth Polkadot parachain slot with a winning bid of a whopping 10.75 million DOT tokens from over 30,000 contributors.
At the time of winning the parachain slot, the total value of the DOT tokens raised by Parallel Finance stood at $306 million.
— Parallel Finance (We are hiring) (@ParallelFi) December 9, 2021
Throughout its crowdloan campaign, Parallel Finance managed to maintain and hold the lead from Clover Finance, Litentry, and other competing projects looking to secure a parachain slot.
In addition, Parallel managed to achieve the third largest contribution in terms of DOT tokens to date, passing Astar in the final hours of their crowdloan.
For the uninitiated, the Polkadot parachain auctions is an innovative auction system that allows smart contract projects to connect with the Polkadot network by bidding through DOT tokens. Parallel Finance emerged as the winner of the fourth Polkadot parachain slot and will now be boarded as the latest parachain on Polkadot.
Commenting on the development, Yubo Ruan, Founder, Parallel Finance, said:
“The Parallel Finance team thanks the community members for showing trust, thereby helping us to become part of the Polkadot ecosystem by securing a parachain. It’s been a huge milestone in a very short period of time. Since its inception in April 2021, Parallel Finance is gaining ground as the most trusted institutional grade lending protocol for decentralized finance.”
Parallel Finance to Go Live on December 17
Notably, the first batch of Polkadot parachain auctions is expected to conclude by mid-December.
Accordingly, all the winning parachains – including Parallel Finance – will go live on December 17. The parachain duration will last for the next 96 weeks during which Parallel Finance will hold the DOT tokens until the end of the allotted time.
The rewards for crowdloan contributors will be distributed in 9 sessions with the first disbursement of rewards slated to occur five days after the parachains are deployed. Subsequently, the remaining rewards will be distributed to the contributors every 92 days.
Aiming to Become the “DeFi Pulse of Credit”
Parallel Finance is committed to adding more utilities to the nascent DeFi space via pragmatic tools such as interest rate swaps, leverage staking, and auction lending, among others.
Eventually, Parallel Finance aims to cement itself as the de-facto lending solution for Polkadot (DOT) and Kusama (KSM) stakers by offering higher yields and more passive earning opportunities to users.
In terms of credit offerings, Parallel Finance offers an innovative credit reporting system that provides lenders with an additional line of defense to safeguard the average users from rogue institutional borrowers.