Polkadot-based decentralized finance (DeFi) dApp parachain Parallel Finance introduces a unique and cost-effective way to increase earnings and capital efficiency.
Parallel Finance facilitates easy entry into the fast-growing DeFi ecosystem with its top-notch interoperable system of dApps. The protocol is currently also touted as a Polkadot-based super dApp parachain.
This article is an in-depth introduction to Parallel Finance. It contains important information like how to earn amazing APYs on your $DOT tokens, product on Parallel, DOT parachains, etc.
Parallel offers the best DeFi tools + highest earning rates! 📈
This wouldn't be possible w/out the incredible community that supports us. 🙏 If you'd like to continue supporting us, consider contributing to the Parallel $HKO Crowdloan & earn rewards! https://t.co/mRoyMCtawH
— Parallel Finance (We are hiring) (@ParallelFi) July 21, 2022
Before we move on, let’s find out more about Parallel Finance.
What You Should Know About Parallel Finance
As previously indicated, Parallel Finance is based on the Polkadot network. The protocol also focuses on providing its users with top-notch capital efficiency. It also ensures that they enjoy compound yields as well as remaining liquid. Parallel Finance achieves these features with its unique composable and interoperable system of community-centric decentralized applications (dApps).
One of Parallel Finance’s main goals is to facilitate easy entry into the DeFi space. To achieve this, the protocol currently boasts over seven different DeFi products. These products include:
- Liquid staking
- Decentralized Money Market
- AMM
- Yield farming
- Liquid crowd loan
- Stream protocol (DAO tooling)
- Its wallet platform
Interestingly, plans are also in place to launch more DeFi products in the near future. Also, Parallel Finance is looking to extend its reach beyond the Polkadot chain and into other networks like the Ethereum chain, etc.
Other Important Details
Polkadot Chain, on which Parallel is currently built, is one of the top blockchain networks available today. The network also boasts of over a $40 billion market cap. It is also one of the major players in the DeFi space today. Parallel Finance further takes investing in the DeFi space to new heights with its unique suite of decentralized applications (dApps). Furthermore, providing its users with the opportunity to earn amazing yields from their DeFi investments.
Parallel Finance has two main derivative assets, namely sTokens and cTokens. These assets are usually allocated to users for staking their assets on either the crowdloan platform or the liquid staking product. With derivative assets, users will be able to earn a higher APY. Therefore increasing their capital efficiency.
Staking on Parallel
Liquid staking on Parallel is one of the top products of this DeFi parachain. The product makes it possible for users to earn amazing staking rewards without having to lock-up their crypto assets. To take part in the liquid staking products, interested persons will have to deposit $DOT tokens to receive derivative assets (sDOT) in return.
sDOT holders also enjoy unrestricted access to DeFi activities on the Parallel chain. Therefore, providing them with the opportunity to earn more yields on the Parallel parachain. sDOT holders can earn APY as high as 18.9% in risk-free staking. However, stakers who do not mind the risk have the opportunity to earn an APY surpassing 18.9% either via farming or leverage staking.
What yield strategies you use depend on your risk preferences.🤔
Risk-averse users can simply hold sDOT after staking for a highly competitive APY. Higher tolerance users get a higher APY by lending sDOT on Money Market to leverage up $DOT positions.🔋https://t.co/sIkqaAGOGg pic.twitter.com/blOo1BBSDc
— Parallel Finance (We are hiring) (@ParallelFi) July 19, 2022
Staking on Parallel currently has a TVL of $507,225,401. Earnings are also as high as 21.79% with about 2.26 million DOT tokens currently total locked.
Source – Parallel Finance
Parallel Finance – DOT’s Fourth Parachain Winner
Parallel Finance is also the fourth DOT parachain after amassing over $300 million via its crowdfunding event. Other Polkadot parachain auction winners include Acala, Moonbeam, Astar, and Clover. Following winning the auctions, the parachains have all gone on to make impressive changes in the DeFi ecosystem.
- Acala – for example, launched the $250 million “aUSD Ecosystem Fund.” The parachain also received assistance from about nine parachain teams and venture funds to launch the project. The aUSD fund focuses on lending support to upcoming startups looking to create dApps with stablecoin use cases on both the Kusama and Polkadot chains.
Acala, nine parachain teams, and a group of venture funds have launched the $250 million 'aUSD Ecosystem Fund' 🅰️💸
The fund is seeking early-stage projects from any @Polkadot or @KusamaNetwork parachain with strong $aUSD stablecoin use cases 🚀https://t.co/OJ2V47ZUry pic.twitter.com/NDgLg2bG8N
— Acala (@AcalaNetwork) March 23, 2022
- Moonbeam – also announced the launch of the Harvest Moon to usher in the future of DeFi on Moonbeam. The announcement took place last month.
1/ 🌕 Introducing Harvest Moon: A Moonbeam DeFi campaign to support #DeFi activity & the next wave of cross-chain connected apps that will build the future of DeFi on Moonbeam Network!🚀✨#HarvestMoonbeam https://t.co/TCi9TSR5EJ
— Moonbeam Network #HarvestMoonbeam (@MoonbeamNetwork) June 23, 2022
- Astar Network – is popularly known as the innovation hub of Polkadot. The network also recently launched a new HRMP portal between both Astar Network and Acala Network. The portal will facilitate the movement of ACA, aUSD, and ASTR tokens across both networks. The network currently boasts of a TVL of $1 billion and an estimated $250 million ETH assets bridged.
New HRMP channels have been opened between @AstarNetwork and @AcalaNetwork to allow movement of the ASTR, ACA, and aUSD tokens!
We are excited to build together with our friendly ecosystem partner Acala!https://t.co/z0JlFM3lE1
— Astar Network – Innovation Hub on Polkadot (@AstarNetwork) July 13, 2022
Clover – is a substrate Layer 1 chain that is cross-chain interoperable. Clover is also actively involved in scaling decentralized applications (dApps) in the multi-chain universe.
Parallel Finance has also been hard at work as the fourth Polkadot (DOT) parachain. The protocol recently unveiled its Crowdloan Platform 2.0.
We launched our Crowdloan Platform 2.0 🥳🥳
Deposit your $DOT to our parachain and contribute to @Polkadot crowdloan auctions to receive:
✅ All rewards distributed by the crowdloan projects
✅ 4 $PARA /DOT
✅ cDOTContribute here: https://t.co/xdg2zKkP1x pic.twitter.com/BkMA0vcGtu
— Parallel Finance (We are hiring) (@ParallelFi) July 20, 2022
In conclusion, Parallel Finance hopes to bring the benefits of decentralized finance to the masses. Making DeFi easily accessible to anyone irrespective of their geographical location. In simple terms, Parallel Finance hopes to bring “[…] DeFi to 1 Billion People.”
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