The startup wants to become a DeFi “brand” across multiple blockchains.
Lending startup Parallel Finance raised $22 million in a Series A investment spherical that valued the polkadot- and kusama-centered decentralized finance (DeFi) protocol at $one hundred fifty million.
The spherical, one of the single-biggest hauls for a undertaking constructing on Polkadot’s multi-chain network, comes simply months after Parallel’s $2 million pre-seed spherical of investment. Polychain Capital led the spherical with participation from Lightspeed Venture Partners, Slow Ventures, Blockchain Capital and Alameda Research.
Parallel appears to reinforce increase as a DeFi opportunity to Ethereum, the marketplace chief notwithstanding low processing velocity and excessive fees. Polkadot, a competing environment that plugs into a couple of blockchains, doesn’t but have as strong a protocol landscape.
Parallel’s solution is a set of automatic marketplace making, staking and derivatives offerings for polkadot in addition to its staging-floor counterpart, kusama.
Project founder Yubo Ruan stated Parallel has accrued 3,000 customers withinside the 5 months after release. Many of them are institutional – his backers included.
“The purpose that we deliver a variety of investors – particularly Polychain main the spherical – is due to the fact they may be one in every of the most important DOT holders and kusama (KSM) holders. They need to have yield on this area, they need to have use of DeFi protocols” he stated.
He stated Polychain and its VC opposite numbers acquired Parallel’s governance tokens in lieu of conventional fairness payouts. “We plan to do an fairness [round in a] preserving employer withinside the destiny as soon as we release the protocol,” stated Ruan.
Ruan stated Parallel plans to double its personnel withinside the subsequent six months. Right now it wields 20 full-timers; 5 months in the past it become simply him.
The heady increase is essential to maintain up with growth demands: Ruan desires to lease area of expertise engineers which could construct for ecosystems apart from simply Polkadot. Ruan stated Parallel becomes an umbrella “brand” with footholds throughout a couple of blockchains.
“We consider in a multichain destiny. Polkadot is one in every of them in order to do nicely, Ethereum goes to do nicely too, solana goes to do nicely. Whenever we discover issues withinside the area associated with DeFi,” that’s wherein Parallel will construct, he stated.
Each undertaking could be its personal entity.
“This $150 million valuation is only for the Polkadot chain,” he said.