Parallel Finance promotes the polkadot ecosystem
After winning the 4th round, Parallel Finance has secured its place in the Polkadot ecosystem for almost two years. Polkadot parachain is the blockchain individually integrated into the Relay Chain (Relay Chain) via “slots” and can interact with each other through bridges.
Projects compete for a place through a parachain auction process. To win a place in the Polkadot ecosystem parachain auctions, contributors and investors vote by staking DOT. Parallel Finance has collected a total of more than 10.75 million DOT, which equates to about $306 million.
The source: parachains.info
Founder Rubo Yuan expressed gratitude to contributors for “helping us become part of the Polkadot ecosystem by securing a parachain position.”
This makes Parallel Finance the third largest DOT contributor in Polkadot's parachain auctions to date, slightly ahead of Astar, which won the third parachain auction. with 10.33 million DOT. However, there was a big gap between the first and second winners of the parachain auction – Acala and Moonbeam. Acala collected about 32.51 million DOT, and while Moonbeam contributed about 35.75 million DOT.
Parallel Finance will be awarded the lease on December 17 of this year, which will last until October 20, 2023. Contributors to the project will be rewarded with PARA tokens at an estimated rate of about 25 PARA : 1 DOT contributed. According to the project team, these lockup rewards will be distributed in nine different installments spread over the lease period, with the first tranche expected to be distributed on December 22.
Parallel Finance is an “institutional level” lending protocol for DeFi launched in April of this year, with huge supporters like Alameda Research, Sequoia and Lightspeed Venture Partners. It seeks to “provide unique lending solutions tailored to Polkadot while ensuring safety and security for users.”
As for Polkadot, the DOT native token price is decreasing after four rounds of parachain auctions. It all started with a large-scale decline that made Bitcoin lost $55,000.
The DOT price is currently trading around the $27 mark, down more than 50% from the $55 ATH recorded on Nov. 4.