December 6, 2022

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

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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.

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.

Parallel Finance( PAR/Tether )on As the DeFi space continues to grow at an unprecedented rate, Parallel is aiming to broaden its operations by hiring more developers and engineers, Ruan said. There are presently 3,000 users of the protocol, however Ruan said he was confident of the procedure reaching over 50,000 users within the next year.

Protocol Set to Participate in Polkadot Crowd Auctions

Parallel is likewise seeking to join Polkadot and Kusama crowd auctions. Earlier last week, Parallel announced that it had released its crowd loan project to gain a spot for a Kusama parachain slot, with Heiko Finance functioning as the parachain to launch on Kusama.We

With only 100 parachain slots being offered on the Polkadot network, projects need to win a crowd loan in order to operate on the mainnet and connect to the DOT network.

Associated Reading|Polkadot Officially on Schedule for Next Parachain Auctions on Kusama

As for future financing, Ruan said Parallel Finance will raise more funds once the task has more TVL (total value locked).

Featured image from UnSplash