Parallel Finance is a Decentralized Money Market Protocol that offers lending, staking, and borrowing in the Polkadot ecosystem.
Depositors can lend and stake simultaneously to earn double yield on their staked coins, and borrowers can collateralize to borrow.
We refer to this feature as "leverage staking," because users can lever up agains their staking collateral to increase their yield overall. In addition, when a user's DOT and KSM are staked through Parallel, a reputation-determining algorithm is applied which maximizes staking yield on behalf of the user. In the future, projects and individual users will also be able to source their auction loans through Parallel's interface--a feature we call "auction loans." This feature will give users the ability to stay liquid while their DOT/KSM is locked in parachains, an it will give projects direct access to the liquidity they need to win parachain auctions.
PARA Token is the native token of Parallel Finance on Polkadot Deployment, distributed among key actors and partnerships in the ecosystem.
Parallel Protocol currently has a live webApp where users can access the testnet for the core staking, lending, and borrowing products. On the testnet, we have a few hundred daily active users who test and provide feedback directly to our product team. As of September, we are participating in the Kusama parachain slot auction to win a parachain slot. We intend to launch on mainnet in 4Q’21. Upon launch, daily active users, volumes, and related total value locked metrics will be identified.
PARA/HKO has a number of key utilities functions for its holders and users of the Parallel Protocol:
Protocol Governance
At launch, PARA/HKO holders will each have the ability to vote on all aspects related to the management and administration of Parallel Protocol, through governance, including governance action, referenda, network upgrades, council elections, and parameter adjustments, integrations, changes to incentives, and all other managerial functions.
Transaction Fees
At launch, PARA/HKO will also function as a means of satisfying network fees natively. It will be required to execute all transactions, including staking, lending, borrowing, crowd loans, trading, and other peer-to-peer and peer-to-pool arrangements.
Network Utility and Incentive
PARA/HKO is also utilized to incentivize collators and validators, which is the mechanism that powers the decentralized node infrastructure of the network. New PARA/HKO tokens are minted on a continuous basis to reward collators.
PARA/HKO will be used as a token to incentivize users to use our products, part of the liquidity mining program.
Security Module Staking
PARA/HKO can be staked to a security module to hedge risks in case of staking slashes, and in return, contributors to this insurance pool will be compensated with PARA/HKO tokens. The insurance parameters are determined by PARA/HKO token governance in the event of a slash.
Kusama Validator Insurance and Incentivization
Kusama non-active validators will need PARA/HKO to increase their chances of being selected as an active validator based on our algorithm. The PARA/HKO will be used as the reserve in the insurance pool to cover for slashing risks.
