What is Parallel Finance?

Finance is a decentralized money market protocol on Polkadot has the main function of providing borrowing, borrowing or staking services on the ecosystem .

Finance allows lenders to both lend and staking at the same time so they can maximize their profits. On the borrower's side, the loan can be mortgaged / to borrow more capital.

In addition, the project will also be based on the Derivatives Protocol staking protocol to help users get more profit when staking. Tokens () for auction purposes bằng cách token hóa DOT đã được staked và đem chúng đi sử dụng cho các mục đích khác.

Similar to Polkadot whose test chains are then Parallel is a project built on Polkadot there will also be a "sister" version project to be run on is Hieko Finance. There will be some differences between the 2 projects because they run on 2 different chains, however, the core features are the same.

“Parallel Finance Project Website Interface” | Source: Parallel Finance

In addition, the you can follow more:

  • The official website of the project here.
  • Official Twitter of the project here.

Highlights of Parallel Finance

The functions of Parallel Finance will be similar to the Heiko Finance project on Kusama Chain.

Increase liquidity when staking

The current situation is Polkadot native token (DOT) when staked at will receive about 14% annual profit but when you want to unstake it takes up to 24 days.

In addition, DOT when staking will not bring any additional utility and this makes the stakers lose motivation and they also have to face the "opportunity cost".

Opportunity cost is an economic concept when a person does an action that if he chooses one of two different paths, he will bear this part of the risk if he does not choose the other. And when not calculated carefully, it will cause great losses.

Therefore, Parallel Finance thanks to the Staking Derivatives protocol can help increase utility when stakers need to stake DOT to auction parachains or mobilize Crowdloans community funds according to the characteristics of Polkadot .

About features : Parallel allows lenders to stake DOT and still get more profit from lending in the form of xDOT, ie profit from 2 sources. As for the borrowers, they can still stake DOT but can also borrow it based on the respective amount of DOT stakes without selling them.

About the crowdloans feature: Users participating in Crowdloans on Parallel will not be subject to a lock-up period of up to 2 years, but you will receive cDOT-A (A: the project you have committed to join the crowdloans).

This is a liquid asset that allows you to trade on exchanges in the system or even mortgage in the market when parachains launched.

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In addition, you can bring this cDOT-Tokens to claim DOT/ when the project launches on Kusama (about 48 months) or Polkadot (24 months).

In summary, Parallel helps your assets when participating in Crowdloans will still be able to make more profits for you and can reduce the risk of DOT devaluation during locking.


Crowdloans rewards from multiple layers and better returns

Polkadot Program Crowdloans will start from 11/11/2021 and projects will compete for 1 batch of 5 seats. To make it easy for you to understand, crowdloans is basically a form of raising capital for projects to compete on the Polkadot network and users will contribute DOT to the projects they believe in and will receive back the DOT number and rewards.

Parallel Finance is allowed to act as an intermediary to help operate and mobilize crowdloans on the Polkadot network until the end of March 2022, which is the end of the auction period.

Parallel cooperates with networks in the ecosystem Polkadot to provide rewards to the community. In addition to the basic community reward, both Parallel Finance and participating projects will give an additional x% bonus based on the user's contributed DOT.

For example, on Parallel's platform, if you contribute 10,000 DOT in project A, you can earn a reward of:
Basic reward + $40,000 PARA bonus + up to XX% native tokens of participating projects.

Extra rewards come from the cooperation between projects and Parallel

However, if you use other platforms to participate such as , you will only be able to claim the “Basic crowdloans bonus” + an incentive coming from the platform (if any) but the reward rate will not be attractive compared to the same amount of contributions.

Full-featured interface

There are many ways to contribute to projects participating in Crowdloans Polkadot (eg through project websites, PolkadotJS, wallet app). However, there is still no project that makes it easy for users to contribute to various crowdloans projects.

Parallel allows you to contribute to different crowdloans projects in a simple way and can track the rewards and progress of the projects in a single simple interface.

The interface provides information about the progress of the project participating in Crowdloans.

Information about Parallel Finance/Heiko Finance Tokens

PARA is the native token of Parallel Finance and when you stake DOT in the lending and borrowing feature, you will receive xDOT in return; If you stake DOT for crowdloans, you will receive cDOT-(crowdloans project token).

HKO will be the native token of a sister project with Parallel Finance on Kusama and has similar features and use cases to PARA.

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Key Metrics

PARA

  • Token Name: Parallel Token
  • Ticker: PARA
  • : Polkadot
  • Token Standard: Updating…
  • Contract: Updating..
  • Token Type: Utility, Governance
  • Total Supply: 10,000,000,000 PARA
  • Circulating Supply: Updating…

HK

  • Token Name: HEIKO Token
  • Ticker: HKO
  • Blockchain: Kusama
  • Token Standard: Updating…
  • Contract: Updating..
  • Token Type: Utility, governance.
  • Total Supply: 1,000,000,000 HKO.
  • Circulating Supply: Updating…

Token Allocation

PARA

A total of 10,000,000,000 PARA will be distributed as follows:

  • Liquidity Mining: 25%
  • Token Sale: 20%.
  • Team & Advisors: 20%.
  • Ecoystems & Dev Funds: 15%B
  • Crowdloans: 15%.
  • Insurance Fund: 5%.
Source: Coin98

HK

A total of 1,000,000,000 HKO will be distributed as follows:

  • Liquidity Mining: 25%
  • Token Sale: 20%.
  • Team & Advisors: 20%.
  • Ecoystems & Dev Funds: 15%B
  • Crowdloans: 15%.
  • Insurance Fund: 5%.
Source: Coin98

Token Sale

Updating…

Token Release Schedule

PARA/HKO will have the same token release schedule:

  • Liquidity Mining: 23% will be paid in the first 6 months and the remaining 77% will be paid in the next 47 months.
  • Seed Investors: 15 months lock-up and will be paid within 24 months.
  • Private Investors: 12 months lock-up and will be paid within 24 months.
  • Team & Advisors: 15 months lock-up and will be paid within 24 months.
  • Ecosystems & Dev Funds: 25% is paid at TGE, the remaining 75% will be paid after 47 months.
  • Crowdloans: Lock for 15 months then release after more than 24 months. Pay linear within 24 months
  • Insurance Fund: Will be transferred to Insurance fund after TGE.

Token Use Case

  • Protocol Governance: At launch, PARA and HKO holders will have the right to participate in governance related to things like network updates, council elections or integrations and even switching community incentive methods, etc.
  • Transaction fees: PARA/HKO can be used as a means of paying network fees including services such as staking, lending, borowing, trading and even crowdloans.
  • Network Utility and Incentives: PARA/HKO will be used to encourage Collators or validators. PARA / HKO will be used as tokens to encourage users to use products under the liquidity mining program.
  • Security Module Staking: PARA / HKO can be staking into Security Module for hedging in case of slashing, contributors to this insurance group will be compensated with PARA / HKO tokens.
  • Kusama Validator Insurance and Incentivization: Kusama's inactive validators will need PARA/HKO to increase their chances of being selected as active validators based on the algorithm. PARA/HKO will be used as a backup in the insurance fund to cover the slashing risks on Kusama.

Roadmaps & Updates

Currently, Parallel Finance has not released an official product. The announced project will lay out the upcoming two phases of development with an estimated timeline as follows:

November 2021

At the end of November, Parallel Finance is expected to launch Beta Launch, this version will be used by everyone but with a certain level of deposits and borrowing.

December 2021

Around mid-December, Parallel Finance will launch the official version with all the features and the project will also announce the $PARA Token.

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Project team, investors & partners

Team

Parallel's team consists of many members with diverse backgrounds and is distributed according to important departments such as engineering, product and operations, marketing and development.

Parallel employees work in the engineering fieldParallel employees are in charge of product and operationParallel employees are in charge of marketing and community development.

Parallel Finance investor

Currently, Parallel has not announced information about investors. I and the team closely follow the news and timely update to you.

Parallel Finance Partner

Parallel's partners are mainly projects that need to raise more capital to participate in crowdloans and they will spend an extra reward to encourage the community to contribute DOT to the project as well as take advantage of Parallel Finance when calculating liquidity of the amount of DOT is guaranteed.

Recently, one of the projects participating in the parachains auction has cooperated with Parallel Finance and has become the first winning project. .


In addition, Parallel has also partnered with Gauntlet to support risk management on the Polkadot ecosystem. Gauntlet uses tried-and-true techniques from the algorithmic trading industry to help Parallel's protocol manage risk, fees, capital efficiency, and rewards.

Similar projects

Parallel is currently not as large as the top platforms like AAVE, but the approach and support for the important programs of the Polkadot ecosystem, this protocol is doing very well and shows its effectiveness when it has raised more than 14% of the total amount of DOT raised from all platform for crowdloans projects and parachains auctions.

However, you can refer to other major lending platforms in the market such as as well as some ecosystem-level lending for you to have certain projections for yourself.

AAVE - is an open source and non-custodial protocol that allows users to profit by depositing and borrowing assets. Presently is currently the leading lending platform and accounts for a large proportion in the lending segment in particular and the entire market Generally speaking.

Solend - a Lending protocol built on , helping you to borrow and lend all kinds of assets ( assets) without going through any third party. Solend's goal is to be the simplest, easiest to use and most secure solution on the internet .

Summary

This article has summarized the most basic information you need to know about Parallel Finance and PARA token. With this post T-REX I hope readers can grasp some of its investment potential.

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