DeFi Protocol Parallel Finance Raises $22 Million in Series A Funding

DeFi Protocol Parallel Finance Raises $22 Million in Series A Funding

Earlier on Monday, Parallel Finance introduced that it had raised $22 million in a Series A funding spherical. 

The investing spherical for the Polkadot-based DeFi protocol was led by Polychain Capital, alongside Alameda Research, Blockchain Capital, Blockchain ventures, Slow ventures, Lightspeed enterprise Partners, and CMT Digital, amongst others. 

What is Parallel Finance?

Parallel Finance affords margin staking, public sale loans, staking derivatives and an automatic market maker (AMM) curve to allow higher yield for Polkadot holders. 

The protocol additionally boasts of options similar to liquidity mining and leverage staking. Liquidity mining allows customers to stake their Polkadot tokens to obtain Parallel’s native PAR token, whereas leverage staking permits customers to borrow in opposition to their collateral to extend yield. 

The Series A spherical was an fairness spherical — which means that buyers are given fairness, or inventory, in Parallel. This is Parallel Finance’s second ever funding spherical, because the mission 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 mission nonetheless stays in relative infancy, at the moment in testnet on each Polkadot and Kusama. Parallel is planning to launch its mainnet in the final fiscal quarter of 2021, in accordance with Co-Founder Yubo Ruan. 

Parallel Finance (PAR/Tether) on Tradingview.com

As 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 the moment 3,000 customers of the protocol, however Ruan stated he was hopeful of the protocol reaching over 50,000 customers inside the subsequent yr. 

Protocol Set to Participate in Polkadot Crowd Auctions

Parallel can be seeking to be 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. 

With solely 100 parachain slots being obtainable on the Polkadot community, tasks have to win a crowd mortgage in order to function on the mainnet and hook up 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 mission has extra TVL (whole worth locked).

Featured picture from UnSplash



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