Extra enterprise capital funds are flowing into decentralized finance (DeFi) protocols with Parallel Finance changing into the most recent to safe a multi-million greenback funding spherical.
In an announcement on Aug 30, Polkadot-powered Defi lending and staking protocol Parallel Finance stated that it had raised $22 million in a Sequence A funding spherical that valued it at a cool $150 million.
The spherical was led by Polychain Capital with participation from the standard trade buyers together with Lightspeed Enterprise Companions, Sluggish Ventures, Blockchain Capital, and Alameda Analysis.
It’s one of many largest funding rounds on Polkadot’s Kusama community according to Parallel and follows a $2 million pre-seed spherical for the protocol in June.
Extra DeFi to Polkadot
Parallel plans to carry extra DeFi to the Polkadot ecosystem by offering a collection of automated market making, staking, public sale loans, and derivatives buying and selling for the community and its testbed blockchain Kusama.
Venture founder Yubo Ruan commented on the institutional backers revealing that they’re closely invested within the Polkadot ecosystem:
“The explanation that we carry a variety of buyers – particularly Polychain main the spherical – is as a result of they’re one of many largest DOT holders and Kusama (KSM) holders. They wish to have yield on this area, they wish to have use of DeFi protocols”
Late final week, Parallel introduced the launch of its crowd mortgage marketing campaign to compete for a Kusama parachain slot. Its sister community Heiko Finance would be the parachain that it hopes to launch on Polkadot’s “Canary Community.”
Ruan elaborated that DOT and KSM holders are confronted with a dilemma between lending and staking. A lending charge that’s increased than the staking charge will lead to tokens being unstaked whereas the other will lead to holders staking DOT.
As its identify suggests, Parallel Finance goals to beat this difficulty by providing “parallel curiosity” utilizing a lending protocol that enables holders to borrow belongings on prime of their staking derivatives.
The protocol will use the funding to increase its staff from the 20 employees that it presently has. There may even be expanded into multi-chain ecosystems, acknowledged Ruan who added:
“Polkadot is one in all them that may do nicely, Ethereum goes to do nicely too, Solana goes to do nicely. Every time we discover issues within the area associated to DeFi,”
DOT and KSM worth updates
Polkadot’s native DOT token has gained 6.5% since open to succeed in $27.70 in response to CoinGecko. DOT has gained 60% over the previous month however stays 45% down from its Could 15 excessive of $49.35.
Kusama’s KSM token, which is used to stake within the parachain auctions, is up by almost 17% on the day, buying and selling for $350. KSM surged to $622 in mid-Could however is presently down 43% from these heady heights.
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