Won Parallel Finance to win in Polkadot’s fourth Parachain auction.

An “emerging and emerging” ecosystem

After winning the 4th round, Parallel Finance has secured its place in the Polkadot ecosystem for almost two years. Polkadot parachains are individual blockchains that can be integrated into the main relay chain via “slots” and interact with one another via bridges.

Projects compete for a spot through a parachain auction process. To win a spot in the Polkadot Ecosystem’s Parachain Auctions, contributors and investors vote by staking DOT. Parallel Finance has raised more than DOT 10.75 million in total, which equates to approximately $ 306 million.

Source: parachains.info

Founder Rubo Yuan thanked contributors for “helping us become part of the Polkadot ecosystem by securing a parachain position”.

This makes Parallel Finance the third largest DOT contributor to Polkadot’s Parachain auctions to date, just ahead of Astar, which won the third Parachain auction with DOT 10.33 million. However, there was a huge gap between the first and second Parachain auction winners – Acala and Moonbeam. Acala raised approximately 32.51 million DOT, while Moonbeam contributed approximately 35.75 million DOT.

Parallel Finance will be awarded the lease on December 17th of this year, which runs until October 20th, 2023. Those involved in the project will be rewarded with PARA tokens amounting to an estimated 25 PARA: 1 DOT contribution. According to the project team, these lock-up bonuses will be distributed in nine different installments over the lease period, with the first tranche expected to be distributed on December 22nd.

Parallel Finance is an “institutional level” credit protocol for DeFi that was launched this April with major financiers such as Alameda Research, Sequoia and Lightspeed Venture Partners. It aims to “offer unique credit solutions tailored to Polkadot while keeping users safe”.

At Polkadot, the price of the native DOT token drops after four rounds of Parachain auctions. It all started with a massive drop that cost Bitcoin $ 55,000.

The DOT price is currently trading around the $ 27 mark, more than 50% below the ATH of $ 55 recorded on November 4th.

Source: TradingView

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