Parallel Finance, a new breed of lending protocol set to launch on Polkadot and Kusama, has reported $2M in its initial raise from Pantera Capital, Polychain Capital, Lightspeed Venture Partners, Breyer Capital, 8 Decimal Capital, and Hypersphere Ventures.
Parallel is an institutional-grade lending protocol that seeks to cater to the needs of Polkadot and Kusama. On Polkadot, Parallel will offer DOT and KSM holders cross-chain money market, liquid staking and 0-collateral fixed-rate loans for parachain auctions. Parallel’s recently updated interface is live on testnet at http://parallel.fi/.
Parallel is led by the developer Yubo Ruan, who is already a successful venture capitalist himself. By age 20, Ruan had already sold his first company. After that, he managed 8 Decimal Capital, an investment firm with $60M assets under management. Now at Parallel, Ruan works with, and is supported by a team of developers and a technical advisor from Stanford University.
Projects like Parallel, which intend to launch their own parachains on Polkadot and Kusama, crowdloan funding to participate in parachain auctions. The winners of these auctions will be granted access to their own parachain, which in turn gives them specific rights in the Polkadot ecosystem. In the future, to help other projects and investors acquire parachains themselves, Parallel will offer fixed-rate loans for parachain auctions.
A vital part of Parallel’s roadmap, the parachain infrastructure served as its inspiration. When asked about their recent raise, Ruan had this to say: “The concept of institutional fundraising has given us the inspiration for fixed-term and fixed-rate loans that could be potentially transformed to an auction-as-a-service business model.”
The parachains themselves will store a great deal of DOT and KSM. Projections indicate that parachains on Polkadot could house as much as 30% of the circulating supply after the supply distribution is complete. Parallel’s fixed-rate loans could very well expedite this process, making the acquisition of a parachain a much more attainable goal for new projects.
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Parallel Finance Closed $2M of Funding from Pantera, Polychain, and Lightspeed was originally published in Parallel Finance on Medium, where people are continuing the conversation by highlighting and responding to this story.
