More venture capital funds are flowing into decentralized finance (DeFi) protocols and Parallel Finance becomes the latest to secure a multi-million dollar funding round.
In an announcement made on August 30, the protocol for loans and staking Polkadot-powered Defi, Parallel Finance, said it had raised $ 22 million in a Series A funding round that valued it at $ 150 million.
The round was led by Polychain Capital with the participation of regular industry investors, including Lightspeed Venture Partners, Slow Ventures, Blockchain Capital, and Alameda Research.
It is one of the largest funding rounds in Polkadot’s Kusama network according to Parallel and follows a $ 2 million pre-seed round for the protocol held in June.
More DeFi for Polkadot
Parallel plans to bring more DeFi to the Polkadot ecosystem by providing an automated market making suite, staking, auction loans and trading of derivatives for the network and his blockchain test Kusama.
The founder of the project, Yubo Ruan, commented on the institutional sponsors who reveal that they are heavily invested in the Polkadot ecosystem:
“The reason we attract a lot of investors, especially Polychain leading the round, is because they are one of the largest holders of DOT and Kusama (KSM). They want to perform in this space, they want to use DeFi protocols. “
Late last week, Parallel announced the launch of its group loan campaign to compete for a slot parachain by Kusama. Its sister network, Heiko Finance, will be the parachain which he hopes to launch on Polkadot’s “Red Canaria”.
Ruan explained that holders DOT and KSM are faced with a dilemma between loans and staking. A loan rate that is higher than the rate of staking will result in the tokens not being delegated, while otherwise will result in holders doing staking of DOT.
As its name suggests, Parallel Finance aims to overcome this problem by offering “matching interest” using a lending protocol that allows holders to borrow assets in addition to their derivatives. staking.
The protocol will use the funds to expand its team from the 20 employees it currently has. It will also expand to ecosystems multi-chainRuan stated, adding:
“Polkadot is one of them that will do well, Ethereum will do well too, Solana will do well. Whenever we find problems in the space related to DeFi. “
DOT and KSM pricing updates
Polkadot’s native DOT token has gained 6.5% since this morning to hit $ 27.70 according to CoinGecko. DOT has gained 60% in the last month, but it remains 45% below its May 15 high of $ 49.35.
The Kusama KSM token, which is used to staking in the auctions of parachain, is up nearly 17% on the day, trading at $ 350. KSM rose to $ 622 in mid-May, but it is currently down 43% from those highs.
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