Parallel Finance. What is?

4 min readSep 6, 2021

Parallel Finance — DeFi platform for secure landing, crediting your funds and their staking.

This is not an ordinary DeFi project, this project really has major advantages over other projects. The project is based on the security of crediting your funds, so that you can earn passive income with complete security without fear of losing your funds.

Ecosystem of Parallel Finance:

To begin with, it is worth saying that the project will work in two networks, on the Kusama network and on the Polkadot network, the project performs absolutely the same functions, but it works in two networks.

Products provided by Parallel Finance:

Lending
Liquid Staking
Auction Loan
Cross chain wallet.

Staking:

Supporting proof-of-stake assets, Parallel enables token holders and
projects to flexibly and borderlessly put their idle capital to earn interests.
Margin staking introduces a cross-alliance between stakers and lenders,
removing the opportunity costs for both parties.

Bet your tokens and get passive profit, this is a safe way to get passive profit, since the interest rate is determined by the projects and people who stake their tokens.

Lending and Borrow:

Leverage monotonically with proof-of-stake assets
Take calculated risks to earn greater yield
Lend and borrow your DOT and KSM

In many projects, you can lose money on lending your funds, but with Parallel Finance everything is different, the profit is higher, and the risks are much less.

Auction Loans

Projects that will be looking for a DOT or KSM to launch their own blockchain will be able to find them in the Parallel Finance project and withdraw funds.

Para Shares

Parachain lock-ups, which are a core feature of Polkadot and Kusama, create liquidity problems for users. Parallel will offer the ability to tokenize crowdloan contributions as purchaseable shares, so that users can stay liquid while they contribute.

Token Economics

PARA — governance token Parallel Finance on Polkadot.
HKO — governance token canary network (Heiko) on Kusama.

Token Governance:

PARA(HKO0 token holders are delegated with voting rights and the ability to propose governance action, referenda, network upgrades, council elections, and other parameter adjustments.

Network Utility:

PARA is a native fee token that is required to execute the functionalities and security of the protocol.
The native token is also utilized to incentivize collators and validators, which is the mechanism that powers the decentralized node infrastructure of the network.

Staking and Security Module:

PARA token is also utilized to hedge risks, incentivize rewards, and share profits. The insurance parameters are determined by PARA token governance in the emergency of slash.

Exogenous Utility:

Validators will have incentives to purchase PARA in order to be whitelisted in our node evaluation schema/algorithm. The more PARA they hold, the better their chances will be of being nominated by our stakers.

Economic Utility:

PARA will be burned whenever there is a fee exchanged through our platform. These fees include money market fees, staking/unstaking fees, transaction fees, and any other fees in our future fixed rate auction loan products as well.
PARA will be used as a token incentive to users who stake and lend their tokens on Parallel.

At the moment, tokens are not traded anywhere yet, they can be bought only after launching in Polkadot or Kusama.

However, you can get tokens by participating in the crowdlown. Detailed information will be provided below.

How to get $HKO in crowdlown on Kusama?

Go to the crowdlown page — https://app.parallel.fi/#/auction
Connect your Kusama/Polkadot Wallet.

3. Enter the amount you want to deposit to crowdlown. (Your funds will be blocked for 48 weeks, deposit only free funds).

Here you can see how much you will get for a certain number of blocked KSM.

You block your CSM for 48 weeks and your HKO tokens will be unblocked within 1 year.

But, I advise you to take part in the crowdlown, because this is the only way you can get $HKO tokens so far.

Web-site — https://parallel.fi/
Crowdloan page — https://app.parallel.fi/#/auction