So what is Parallel Finance?
Parallel Finance is a project that is a decentralized platform in the Polkadot ecosystem, offering its users staking, borrowing, lending and more.
Thanks to this platform, which supports Kusama and Polkadot, various projects and token holders will be able to invest their assets freely, without any restrictions, to earn interest. And Parallel users will be able to earn interest from staking while keeping the asset liquid.
Parallel Finance will also offer leveraged staking and auction lending to its users, which will provide them with higher returns and better opportunities.
What is Leveraged Stacking?
Through the Parallel Finance platform, users will be able to simultaneously send their DOT and KSM tokens to Staking in exchange for xDOT and xKSM and lend, thereby earning a double return, and borrowers will be able to borrow by providing collateral.
That is, users can lend their xDOT and xKSM on the Parallel Finance platform to receive an additional borrower fee in addition to their interest rate. And also use xDOT and xKSM as collateral for borrowing.
Importantly, xDOT and xKSM tokens are fully liquid, and entitle users to their underlying DOT and KSM coins while continuing to generate consistent steaming revenue.
What are auction loans?
Users of the Parallel Finance platform will have the ability to deposit loan collateral, either at a fixed or floating interest rate, and projects applying for parachains will be able to borrow from that collateral to participate in parachain auctions, making the parachain market more accessible to new projects. Such auction loans will be of interest to various projects seeking to launch their own parachain.
Investors
Parallel Finance is backed by well-known large funds such as Pantera, Polychain Capital, Lightspeed, Alameda Research, Hypersphere and others.
To sum up, I would like to say that the Parallel Finance platform has good intentions, creating an innovative lending system and enabling ordinary people to earn interest on their assets with maximum security and efficiency.
That's it for today, see you in the next article ;)
And may Fortune guide you through life!
