Parallel Finance - Decentralized Finance protocol on Substrate
Today let's review a relatively new, but already intriguing project - Parallel Finance. Parellel.Fi is a decentralized protocol that allows users to earn passive income by stake their assets, as well as borrow cryptocurrency against collateral (DOT, KSM).
The project is built on Substrate, and is similar to Aave and Compound (which are built on Ethereum). The active development of the Polkadot network has determined the relevance of the appearance of such a protocol in this ecosystem, and Parallel Finance will be one of those projects that will fight for leadership in this specialized niche.
The main features of the functional:
- Dynamic AMM
- Loss-protected staking (there is insurance)
- Lending and deposits
- The ability to optimize assets locked in parachain auctions
Now you can see how the Parallel Finance platform will look like in the testnet version → https://testnet.parallel.fi
To connect to the test platform, we need two extensions - polkadot.js and Metamask. After successful authorization through wallets, we will need to request test assets. To do this, open the project Discord and in the # testnet-faucet channel, write a message with the following content: “drip! YOUR POLKADOT ADDRESS ”. Within a few seconds, your balance will be topped up with test KSM, USDT and Heiko.
On the main tab, Overview / Dashboard, you can see the current wallet balance, the number of different tokens that are used on the parallel.fi platform (deposit, credit, staking, etc.).
In the “Lend and Borrow” tab, you can deposit your underlying asset, see the APY rate and the currently received rewards. If you toggle the “Collateral” slider after a successful deposit, you will have access to the “Loans” section.
The third section is staking. You can stake your underlying asset for a certain percentage (floating) specified in the column. After you stake your asset, you will receive xKSM / xDOT in exchange for your native KSM / DOT.
The launch of the main network of the project is expected towards the end of 2021, around the same time - and participation in parachain auctions on DOT. The sister network of Parallel Finance in the Kusama network is called Heiko, the waitlist for participation in KSM auctions is already open, I think the project will fight for the next 6-10 slots in the near future, we are waiting for announcements)
The project's CEO and founder is Yubo Ruan, a 24-year-old entrepreneur and investor. Parallel Finance also has a good team of specialists in various fields.
Parallel Finance has already been backed by many large partners and funds such as Polychain Capital, Hypersphere, Alameda Research and Pantera. This project also received a grant from the Web3 Foundation of the Polkadot ecosystem.
Let's take a look at how you can participate in Parallel Finance at the moment. At the moment, the community of the project is just being formed, so it is absolutely not too late to take part in various activities related to it.
The project's Discord has a system of points that users can receive for certain contributions - from memes and art, videos, articles and translations to technical developments. The best participants who have contributed to the development of the project and its community, as well as scored a good amount of points, will receive rewards at the end of the program (details unknown).
So, I invite everyone to pay attention to this project, to contribute in various ways, let's study Parallel Finance together!