Institutional-grade lending protocol for decentralized finance (DeFi), Parallel Finance, has won the fourth Polkadot parachain auction.
The press release shared with CryptoPotato informed that the protocol saw support from over 30,000 contributors who provided a total of 10.75 million DOT, worth a whopping $306 million, during the auction.
According to the team, the figure makes Parallel Finance the third project on the Polkadot parachain auction with the largest DOT contribution to date, as it surpassed Astar, the winner of the third parachain auction.
Polkadot parachains are separate blockchains that integrate into Polkadot’s mainnet and are interoperable via bridges. The parachain auction allows investors to vote for their favorite projects by staking their DOT tokens, and whichever project secures the most votes wins.
Parallel Finance noted that winning Polkadot’s fourth parachain auction is a landmark achievement as it intends to become the “DeFi Pulse of Credit,” bringing further transparency in terms of the quality of borrowers and their debts.
The project said it experienced significantly higher community participation during the auction, which allowed it to receive more contribution than other projects vying for the position, including Clover Finance, Litentry, and others.
Speaking in a comment, Parallel Finance founder Yubo Ruan said,
“The Parallel Finance team thanks the community members for showing trust, thereby helping us to become part of the Polkadot ecosystem by securing a parachain. It’s been a huge milestone in a very short period of time. Since its inception in April 2021, Parallel Finance is gaining ground as the most trusted institutional-grade lending protocol for decentralized finance.”
Parallel Finance will go live on Polkadot by Dec. 17, along with other winning parachains, as soon as the opening batch of five Polkadot auctions is completed by mid-December.
The parachain lease will last for 96 weeks, ending on Oct. 20, 2023, during which Parallel Finance will hold the funds.
According to the team, the lock-up rewards will be distributed in nine different batches throughout the lease. The first distribution is scheduled to take place on Dec. 22, 2021, five days after the parachains go live, with subsequent rewards sent to contributors every 92 days.