- Summary:
- DeFi protocol, Parallel Finance, has launched six key features simultaneously. What’s the significance and what’s in it for users?
Polkadot and Kusama’s DeFi Parachain, Parallel Finance, has launched Automated Market Maker (AMM), Farming, Liquid Staking, v2 Crowdloan Platform, Cross-Chain Bridge, and Wallet. The launch of six separate products in one day points to Parallel’s aggressive approach towards establishing a strong presence in DeFi. Following the development, Parallel’s users can now access leveraged trading, crowdloans and trading through Kusama’s Heiko (HKO) platform. Also, Parallel will introduce these features on the main chain on Polkadot. Heiko’s efficiency and interoperability in the system has been made possible by the underlying Substrate chain
“The combined product launch marks the official realization of Heiko’s vision as an integrated DeFi parachain”, said Yubo Ruan, Founder of Parallel Finance.
These new features will bring new use cases to the platform. When trading with HKO and KSM, the AMM users will be able to swap their assets at a profit by using decentralized liquidity pools. Increased XCM usage will lead to the inclusion of more assets in future releases.
The Parallel wallet offers users a reliable and secure way to store and monitor their holdings. Furthermore, they’ll soon be able to send their assets from one Parallel address to another. Like the Crowdloans module, Liquid Staking allows users to access their KSM even with their assets staked. Essentially, this model creates a hybrid of DeFi yield and staking.
With the Farming feature, yield generation will be even easier, as there will be a single point of contact for HKO. Consequently, HKO will be operating in an ecosystem outside crowdloans. Also, this approach strengthens Parallel’s premier liquid crowdloans feature, resulting in a better Crowdloans V2.
On the other hand, the Cross-Chain Bridge as its name suggests is a bridge that enables the moving of DOT and KSM from the relay chain.
About Parallel Finance
A DeFI-centric lending protocol, Parallel is capable of supporting assets from both Kusama and Polkadot networks. Polkadot’s fourth parachain auction, held in December 2021, saw Parallel take the top spot with a crowdloan of $306 million. Through Parallel , token holders and projects can generate significant profits from their idle assets. It accomplishes this by enabling margin staking, staking derivatives, auction loans. Also, it has an AMM feature. All these products allow DOT and KSM holders to optimize their capital. Additionally, Parallel’s credit reporting system protects lenders from dishonest institutional borrowers by providing an additional line of protection.