The winner of the 4th slot in the Polkadot parachain auctions has emerged, and with a total of $306million in contributions, this slot goes to Parallel Finance.
Thirty-thousand (30,000) contributors pooled more than 10.75 million DOT tokens to make this happen in the 4th auction round, enabling Parallel Finance (PARA) to beat out competition from Litentry, Clover Finance and a host of others. This contribution also marks the 3rd largest DOT token contribution in all auction rounds.
In the Polkadot parachain auction, investors lend their DOT tokens to blockchain projects (the parachains) on the Polkadot network. The auction process is a system where investors vote by a cast of DOT tokens. The project with the highest number of votes wins the auction.
Parallel Finance: What Lies Next In the Journey?
The Polkadot auction win marks the culmination of a series of milestone accomplishments by Parallel Finance. Parallel’s Auction Loan product was responsible for a chunk of the contributions, totalling slightly more than 8.5million DOT tokens.
The total crowdloan distribution is a summation of the early bird, referral, and basic rewards. Crowdloan contributors will be the beneficiaries of any leftover PARA tokens. Rewards will be sent out in 9 tranches, with a distribution cycle of 92 days.
Parallel Finance and the winners of the previous Polkadot parachain auctions are expected to go live on 17 December. This will mark the first phase of the entrenching of Parallel Finance into the DeFi ecosystem. Parallel Finance intends to launch on multichain as part of its scaling process before creating products designed for mass adoption.
Some of these products are:
a) An automated market maker which will provide a more efficient curve for xDOT, xpDOT, cTokens and other interest-bearing tokens, all with negligible or even non-existent slippage.
b) ParallelHeiko, the money market product for Polkadot and Kusama. This will be the first staking, lending, and borrowing platform launching on Kusama and featuring the Heiko token.
c) Insured proof-of-stake environment to promote good validator behaviour by discouraging slashing.
d) Margin staking, a leveraged product that encourages risk-driven staking for potentially higher yields than regular staking. Stakers continue to remain liquid as they can borrow against the future value of the assets.