Company attributes
Other attributes
Parallel Finance is a developer of a decentralized lending and staking platform on Polkadot and Ethereum. The company's platform offers decentralized financial (DeFi) services and products, including lending, trading, staking, and derivatives on multi-chains and has a focus on user safety and security. Parallel Finance is developed to enable token holders and projects to put idle capital to earn interest. The company was founded by Yubo Ruan in 2021 and is located in San Francisco.
The Parallel Finance lending protocol uses a pool-based strategy, which works to aggregate users' supplied assets. The protocol is developed to have DOT, sDOT, and USDT pools where users can deposit their assets to earn interest. So long as the total supply amount of a pool is not being borrowed, the pool is liquid, allowing users to realize earned interest and withdraw pooled funds. The earned interest is based on the supply interest rate of the asset, which is calculated based on the current interest being paid and divided based on pool ownership amongst those supplying assets to the pool.
Parallel Finance allows users to borrow from the protocol with over-collateralized loans, with a floating interest rate that is determined by the utilization of the market's assets. Users, in order to borrow an asset, are required to deposit or approve an asset or assets as collateral that is more than the target outstanding borrowed amount.
The Parallel Finance relay chain uses a nominated proof-of-stake (NPoS) in which those with the PARA or HKO token can stake their tokens to nominate validators and earn yields. This is used to secure the network and to incentivize collaborators to produce valid blocks. Validators that harm the network have their staked assets slashed, and there is a delay or unbonding period enforced by protocols when a user wishes to cease participating.
The PARA token is the native token of Parallel Finance and HKO is the utility token for Heiko, which is Parallel's sister program, which has utilities mirrored on Kusama. Both tokens are used for protocol governance, transaction fees, network utility and incentive, security module staking, and validator insurance and incentivization.
Parallel Finance also offers a Parallel Wallet extension. The non-custodial multi-asset wallet solution is native to Parallel Finance and developed to give users a unified DeFi experience. The Wallet is intended to serve as an entry point for users and helps them secure their assets and interact with Parallel Finance's other DeFi solutions.
