Parallel Finance expands its utility with Defi functions having initiated in the platform

Parallel Finance expands its utility with Defi functions having initiated in the platform

By Greenchic | Investing and Trading | 26 Apr 2022


 

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 Parallel Finance has the highest TVL in the #Dotsama ecosystem

 

Parallel Finance’s DEFI capabilities have brought the protocol over $821 million in TVL, making the protocol the top leading parachain in Polkadot in terms of Total Value locked. Yup, right now Parallel Finance is the Polkadot parachain with the highest TVL in the #Dotsama ecosystem.

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Parallel Finance been popular for its crowdloan palette enabling holders to contribute their Dot

 

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Parallel’s been used by Dot Holders to contribute to Polkadot’s Parachain Crowdloans.

Even before DEFI capabilities got initiated in Parallel Finance, it was functioning as a Crowdloan contribution platform where DOT holders could contribute their DOT to projects participating in Polkadot’s parachain auctions through parachain crowdloans. Those who contributed Dot to Polkadot’s parachain crowdloans via Parallel Finance, get their locked Dot as cDot in Parallel Finance, whose liquidity can be used in Parallel Finance’s Defi.

This was a great option for contributors, as crowdloan contribution through the normal route would have their DOT locked for 2 years, 96 weeks till the time period of the parachain lease completes.

Apart from receiving cDOT derivative which can be used in Defi, Dot contributors who contributed to parachain projects using Parallel Finance’s Crowdloan pallet received Para rewards along with rewards of the winning parachain’s token.

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You can see here that a Dot contributor who contributed to parachain projects — Astar and Efinity received back their crowdloan DOT in form of cDOT along with tokens of the two parachain projects and Para tokens of Parallel Finance.

Now, this cDOT can be employed in Parallel Finance’s Defi with the team having initiated the protocol’s DEFI capabilities from April 15th.

 

 Parallel Finance kick starts it’s DEFI functionalities — A brief Overview

 

 

Let’s checkout Parallel Finance’s interface and explore the DEFI functionalities of the protocol.

 

Parallel Finance app can be accessed at this url — https://app.parallel.fi/

 

 Overview Tab, the Dashboard of the account holder in Parallel Finance

 

After connecting to your Polkadot wallet, which in this case was the polkadot{.js} extension, the overview tab will show all the balances of the connected Polkadot wallet account. Here on the overview page, all the account holder’s Parallel Finance’s account balances from activities of lending, borrowing and liquidity farming, staking will be displayed.

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Parallel Finance’s Overview tab

 

 Swap tab provides for swapping and a module for liquidity providers

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Next is the swap tab taking you to the swap and liquidity palettes. Now, cDot, Dot and Para can be swapped. This swapping is facilitated through AMM functionalities of Parallel Finance, and is possible because liquidity is provided for swapping these assets by liquidity providers.

Liquidity provision functionalities are initiated on Parallel finance where cDot, Dot and Para holders can become liquidity providers supplying these assets in liquidity pools and earning LP rewards through these pools when swaps happen. More pools of different asset pairs will come up, as they get introduced in Parallel Finance.

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Swap and Liquidity modules in Parallel Finance

 

Money Market Tab for lending, borrowing section of Parallel Finance

 

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Tweet from Parallel Finance


Next, is the Money Market section of Parallel Finance.

Lending and Borrowing of Para and Dot is possible now in Parallel Finance, notice the good APY rates for lending and borrowing Dot with additional Para rewards distributed for it.

defi dex polkadot parallelfinance crypto blockchainMoney Market section of Parallel Finance

Right now since Polkadot’s XCM feature that enables coss-chain transfers is not activated, Dot from Polkadot’s Relay Chain cannot be brought to Parallel Finance, but it will get enabled soon.

 

About Parallel Finance

Parallel Finance is a DeFi Super App aiming to be a one stop Defi shop for people to engage in Defi, it’s built on Polkadot. Focus of Parallel is to bring innovative functions to its platform so people can engage in capital efficient Defi. The aim is to make an easy to use Defi platform with beneficial financial services that will attract 1 billion people to use services of Parallel Finance.

Know about Parallel Finance -

Website — https://parallel.fi/index.html
Twitter — https://twitter.com/ParallelFi

This article was first posted on medium by me as part of Parallel Finance’s Ambassador program. Here, approved articles get rewarded by their tokens for creating content and spreading the word about Parallel Finance.

https://medium.com/@kikctikcy/parallel-finance-expands-its-utility-with-defi-functions-having-initiated-in-the-platform-9f4f5ee14897

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Greenchic
Greenchic

I love to write on things I am passionate about - environment, citizens activism, crypto and life in general. I am a cat enthusiast, nature lover. I am excited to engage at the Publish0x platform by reading and writing crypto and other content here.


Investing and Trading
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