Earlier on Monday, Parallel Finance revealed that it had raised $22 million in a Series A financing round.
The investing round for the Polkadot-based DeFi protocol was led by Polychain Capital, alongside Alameda Research, Blockchain Capital, Blockchain ventures, Slow endeavors, Lightspeed venture Partners, and CMT Digital, among others.
We just raises $22 Million in Series A Funding ， which is leading by @polychaincap, The Largest Round In The Polkadot Ecosystem. @Polkadot @kusamanetwork https://t.co/pISV2Wa9Wy
—– Parallel Finance (@ParallelFi) August 30, 2021
What is Parallel Finance? Parallel Finance uses margin staking, auction loans, staking derivatives and an automatic market maker (AMM) curve to allow greater yield for Polkadot holders.
The protocol likewise boasts of functions such as liquidity mining and utilize staking. Liquidity mining allows users to stake their Polkadot tokens to get Parallel’s native PAR token, whereas take advantage of staking enables users to borrow against their collateral to increase yield.
The Series A round was an equity round — — significance that investors are offered equity, or stock, in Parallel. This is Parallel Finance’s second ever moneying round, as the job raised $2 million earlier in June.
It’s crucial to keep in mind that the procedure has just been online for 5 months, with its debut last March. The task still stays in relative infancy, presently in testnet on both Polkadot and Kusama. Parallel is preparing to introduce its mainnet in the last fiscal quarter of 2021, according to Co-Founder Yubo Ruan.