DeFi protocol Parallel Finance raises $22 million in Series A funding

Parallel Finance, a Polkadot-centered decentralized finance (DeFi) protocol that gives lending and staking providers, has elevated $22 million in a Series A funding round.

Polychain Capital led the spherical, with Lightspeed Venture Companions, Slow Ventures, Alameda Research, Blockchain Money, CMT Digital, Blockchange Ventures, and many others also participating. This was an fairness round and values the challenge at $150 million, Parallel Finance founder Yubo Ruan advised The Block. In June, the project lifted $2 million, bringing its overall funding to day to $24 million.

Parallel Finance was released just five months ago and is currently in testnet on each Polkadot and Kusama networks. The protocol offers two key providers: leverage staking and liquidity mining. Leverage staking allows users to borrow towards their staking collateral to improve their generate, and liquidity mining allows buyers to stake their Polkadot (DOT) tokens to acquire Parallel’s indigenous tokens.

Parallel options to start its mainnet in the fourth quarter of this yr, said Ruan. To that conclusion, the venture is on the lookout to expand its recent team of 20 individuals by largely selecting engineers, he said.

There are at this time 3,000 end users of Parallel, and the protocol options to onboard 10,000 users within just 6 months and about 50,000 consumers inside a 12 months, stated Ruan.

On the products roadmap side, Parallel is also on the lookout at taking part in Polkadot and Kusama group auctions. In purchase to start a parachain on Polkadot’s mainnet, jobs have to have to get a crowd loan. There are only 100 parachain slots on the Polkadot community as of now, which means there are only 100 initiatives that can function on the most important network right up until even further detect, and the group loan is the only way now for new parachains to hook up to the Polkadot network, reported Ruan.

Searching in advance, Parallel designs to also raise more funds, claimed Ruan. “After we have TVL [total value locked] traction, we will do a further spherical,” he explained.

Update: After the publication of this tale, Parallel Finance mentioned it raised $22 million in its Sequence A spherical, not $21 million. The story and its headline have been up to date to replicate that.

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