Parallel Finance - effectively combining lending and staking at Polkadot
Parallel Finance has been heard by cryptocurrency investors since spring 2021. It was during this period that the company Yubo Ruan received investments for the development of the project in the amount of US $ 2 million.
A number of large investment funds acted as investors - Pantera Capital, Lightspeed, Polychain, 8 Decimal.
What is Parallel Finance
This is a decentralized application - DApp, which is built on the Polkadot platform. It has implemented and planned a large number of functions related to the issuance of loans and other earning opportunities, such as staking.
The advantage of the Polkadot platform is that it makes it possible to ensure effective interaction between Ethereum and other blockchains (BSC, Solana, Matic).
An important plus for Parallel Finance will be its partnership with Kusama, the Polkadot test network.
Yubo Ruan believes that investors always have to choose between lending and staking. This leads to constant movement of funds.
In order to turn investing into a comfortable and safe process, Yubo Ruan proposed to issue loans with funds already allocated for staking. This process will not harm the security of the Polkadot network in any way, he assures.
Innovative solutions for the crypto market
The Parallel Finance application acts as a working solution.
4 innovative solutions that should eliminate the disadvantages of the DOT economic model.
Active:
- Algorithmic stacking. To implement this function, a special formula will be used, which will allow to determine the reputation of DOT / KSM nodes and choose the most profitable options for placing funds at%.
- Ability to use leveraged staking. This option is suitable for experienced investors. The validators are given the opportunity to transfer tokens that are in the vesting to the liquidity pool from Parallel Finance.
Planned but not yet implemented:
- A special procedure for conducting parachain auctions, the winning in which opens the way for projects to launch on the Polkadot or Kusama platforms. To do this, Parallel Finance offers the Parashares feature. Users take part in crowdloans and in return for their invested funds, they receive - Parashares, which guarantee the right to redeem DOT / KSM. This is a kind of analogue of shares, while they do not fall under the regulation of the SEC. An important advantage of such shares is that they can be used as collateral documents when obtaining loans in cryptocurrency.
2.Loans, the interest rate of which is formed on the basis of the auction principle. This will provide favorable conditions for lending to projects that take part in parachain auctions. This option can also be used by ordinary users who need tools to develop their own software or for other purposes.
The project team
At the head of the project, as noted, is one of the youngest crypto-investors and angels Yubo Ruan. At the age of 25, he is already a multimillionaire and a developer of several large projects, including the 8 Decimal and Skylight Investment funds. It also brings together many talented programmers, managers and social engineering specialists.
Project resources
Telegram- https://t.me/parallelfi_community
Twitter- https://twitter.com/ParallelFi
APP - https://testnet.parallel.fi/
Diskord- https://discord.gg/buKKx4dySW