Parallel Finance's DEFI services have some value added elements that make it unique
Parallel Finance DEFI is already quite an active DEFI protocol in the Polkadot ecosystem with the Total Value of assets Locked in the protocol being over 430 $ million.
Users have been using Parallel Finance's platform for various purposes from using Parallel Finance's Crowdloan module to contribute their DOT to parachain crowdloans, to providing liquidity for various swap pairs in the protocol, to lending and borrowing assets in the Parallel Finance's Money Market, to liquid staking their DOT for earning sDOT staking rewards.
The above services of Parallel Finance are very value packed with some value additions that make these services very useful.
I will summarize these value added elements prevalent inside Parallel Finance's services below.
Value addition with cDOT asset making crowdloaned DOT a liquid asset with utility
Complete details in this article which explains about cDOT, which is the crowd loaned DOT that holders contributed to various parachains using Parallel Finance's Crowdloan module.
Parallel Finance expands its utility with Defi functions having initiated in the platform
Earning of more yields possible with cDOT asset
cDOT, is used in Parallel Finance's DEFI, where it is possible to provide liquidity to various cDOT pairs and earn LP rewards. These LP rewards can be used to earn further yields in Parallel Finance Money Market.
This is explained inadeptly in this article talking about Parallel Finance's Yield Money Market function -
More rewards for LP providers with the Yield Money Market functions of Parallel Finance
The advantage with cDOT, is that crowdloan contributors get liquid crowdloaned DOT, cDOT whose liquidity they can utilize in Parallel Finance's DEFI and earn more yields. This cDOT will be unlocked to DOT and be credited to the crowdloan contributors account at the end of the parachain's lease period which is 96 weeks or 2 years.
Else otherwise, if crowdloan contributors loaned their DOT the general way available their DOT would be locked in Polkadot's crowdloan vault till the end of the parachain's lease period which is 2 years. This locked DOT cannot be used anywhere to earn yields!!
cDOT can be converted to DOT through swapping
Parallel Finance DEFI's swap module
cDOT holders have a way to convert their cDOT to DOT before the end of the parachain's lease period by swapping their cDOT to DOT in Parallel Finance's swap module. However, in the swap module, the value of cDOT when swapped to DOT may not equal to that of 1 DOT, due to pool's imbalance.
This would however not be the case at the end of the parachain's lease period, when cDOT will be unlocked and credited to cDOT holders at 1:1 ratio to the price of DOT.
Value addition with sDOT in the Liquid DOT staking module in Parallel Finance
Another, such useful function provided by Parallel Finance is Liquid DOT staking. The value proportion here is that DOT holders can earn staking rewards on their Liquid staked sDOT and use the sDOT in Parallel Finance's DEFI to earn more yields by lending sDOT in the Money Market, and providing liquidity to various sDOT pairs.
I have discussed this indepthly in my previous article -:
Going beyond offering the usual DEFI services with Parallel Finance's Dao Fi functionalities
Besides, all these services offered by Parallel Finance that we have mentioned here, the protocol also has Dao Fi functionalities with its Stream module which enables users to schedule automatic recurring payments periodically.
This makes stream a web 3 solution for payroll and token and equity distribution.
I have explained about Parallel's Stream module that has DAO Fi functionalities in this article -:
Parallel Finance's Stream makes scheduling of automatic, periodic payments possible
Different Web3 Financial services that Parallel Finance has to offer make it a Super DEFI App
All these services of Parallel Finance make this protocol a DEFI platform that has a lot to offer its users with its crowdloan module, swap and liquidy module (giving the DEFI protocol AMM functionalities), Money Market module and Dao Fi Module.
However, this is not going to be all, Parallel Finance is getting developed to offer users a lot more services, so the protocol's functionalities keep expanding.
This is why Parallel Finance is a Super DEFI App as it aims to be a one stop DEFI hub offering all essential financial services that we crypto users need!!
This article was first published by me in my medium channel here -:
Thank you for reading!!