Parallel Finance has won a slot during Polkadot’s fourth parachain auction. The lending protocol made the purchase through a $306 million value locked in the crowd loan.
Parallel Finance is an institutional-grade lending protocol that works for decentralized finance (DeFi).
Parallel Finance wins Polkadot parachains auction for $306M
The press release from the firm states that Parallel Finance received support from more than 30,000 contributors. These contributors donated 10.75 million DOT tokens valued at $306 million at the time of the auction.
The purchase places Parallel Finance as the third-largest contributor to the Polkadot parachain auction to date. The lending protocol has surpassed Astar’s value. Astar won the third parachain auction.
Polkadot parachains are individual blockchains that are integrated into Polkadot’s mainnet. They also feature interoperability, which is made possible through bridges. With this parachain auction, investors vote for their top projects by staking DOT tokens, and the project that secures the most votes wins a slot.
Parallel Finance’s DeFi endeavours
Parallel Finance stated that the win was a major achievement for the protocol. It noted that through the win, it seeks to become the “DeFi Pulse of Credit.” This will help boost transparency and the quality of services on the platform.
The Parallel Finance team also noted that it managed to receive a large contribution because it maintained a high level of community participation than the other projects competing for the slots.
The founder of Parallel Finance, Yubo Ruan, spoke of this win stating, “The Parallel Finance team thanks to 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.”
Parallel Finance will launch on Polkadot on December 17 alongside other projects that have won the slots. The lease will run for 96 weeks, and during this time, Parallel Finance will hold the funds. The team notes that the lock-up rewards will be distributed in nine batches throughout the lease.
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