Parallel Finance Powered by Polkadot Raises $ 22 Million for DeFi Products

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 Aug. 30 announcement, Polkadot-based gambling and lending protocol Defi, Parallel Finance said it raised $ 22 million in a Series A funding round that valued it at $ 150 million.

round was led by Polychain Capital with participation from regular industry investors including Lightspeed Venture Partners, Slow Ventures, Blockchain Capital, and Alameda Research.

It is one of the largest funding rounds in the Polkadot Kusama network. according to Parallel and follows a pre-seeding round of $ 2 million for the protocol in June.

More DeFi in Polkadot

Parallel plans to bring more DeFi to the Polkadot ecosystem by providing a suite of automated market making, participation, auction lending, and derivatives trading for the network and its Kusama blockchain benchmark.

founder of the project, Yubo Ruan, commented on the institutional sponsors who reveal that they are heavily invested in the Polkadot ecosystem:

“ reason we bring a lot of investors, especially Polychain, to the top of the round is because they are one of the biggest holders of DOT and Kusama (KSM). y 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 job as Kusama’s chain keeper. Its sister network Heiko Finance will be the parachain it hopes to launch in Polkadot’s “Canary Network”.

Ruan explained that DOT and KSM holders face a dilemma between lending and gambling. A loan rate higher than the stake rate will result in the tokens not being staked, while conversely holders will stake the DOT.

As the 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 equity derivatives.

protocol will use the funds to expand its team from the 20 employees it currently has. It will also expand to multi-chain ecosystems, Ruan said, adding:

“Polkadot is one of those who will, Ethereum too, Solana will. Whenever we encounter problems in the DeFi space «,

DOT and KSM pricing updates

Polkadot’s native DOT token has gained 6.5% since it opened to hit $ 27.70 according to CoinGecko. DOT has gained 60% over the past month, but remains 45% below its May 15 high of $ 49.35.

Kusama’s KSM token, used to participate in parachain auctions, was up nearly 17% for the day, trading at $ 350. KSM was up to $ 622 in mid-May, but is currently down 43% from those intoxicating heights.

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