San Francisco, Dec. 9, 2021 — Parallel Finance, an institutional-grade lending protocol for decentralized finance (DeFi), has successfully secured the fourth slot in the Polkadot parachain auctions. More than 30,000 participants contributed a total of 10.75 million DOT during the fourth round of the auction, equivalent to $306 million.
This is a landmark achievement for Parallel Finance and the entire Polkadot ecosystem. Parallel Finance managed to maintain and hold the lead from Clover Finance, Litentry and others throughout the entire process. Parallel also achieved the third-largest total DOT contribution for all auctions to date, surpassing Astar in the final hours of its crowdloan.
The Polkadot parachain auction is an auction system in which investors cast votes by staking their DOT tokens. For the fourth parachain auction, Parallel Finance has secured the most number of votes, thus winning the auction.
This crowdloan has helped Parallel Finance to bootstrap its connection to the Polkadot network. The community participation for Parallel Chain remained high and continued to peak throughout the auction process.
“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,” said Yubo Ruan, founder of Parallel Finance.
The opening batch of the five Polkadot auctions will conclude by mid-December. Parallel Finance, along with other winning parachains, will go live on Dec. 17. The duration of the parachain lease will last for the next 96 weeks, during which Parallel holds the funds until the end of the allotted time. The lock-up rewards will be distributed in nine sessions. The first distribution begins five days after parachains are deployed, with subsequent rewards sent to contributors every 92 days.
About Parallel Finance
Parallel Finance is an institutional-grade lending protocol backed by the likes of Sequoia, Founders Fund, Polychain, Lightspeed Venture Partners, Slow Ventures, Blockchain Capital and Alameda Research. Parallel seeks to provide unique lending solutions tailored to Polkadot while assuring user safety and security. Since its inception in April 2021, Parallel Finance seeks to add more pragmatic tools like interest rate swaps for long-term growth to DeFi. Parallel offers leverage staking and auction lending as its primary services, providing higher yield and more opportunities for users to become the go-to lending solution for Polkadot and Kusama stakers.
Parallel Finance is seeking to become the “DeFi Pulse of credit.” It aims to bring further transparency in terms of the quality of borrowers and their debts. Its credit reporting system provides lenders with an additional line of defense and keeps rogue institutional borrowers in check.