Parallel Finance has won the fourth Polkadot parachain auction

Over 10 million DOTs have been blocked by users in support of a DeFi lending protocol

10.12.2021 - 08:30

268

1 min

What’s new? Polkadot's fourth parachain auction has come to an end, with Parallel Finance as the winner. In its support, the users blocked approximately 10,5 million DOTs, almost $306 million at the time of writing, Polkadot reports on Twitter.

Congratulations to @ParallelFi on winning Polkadot's fourth auction! Parallel will be onboarded at block #8179200 [Dec. 18] at the beginning of lease 6 with the other first 5 auction winners. Over 4K network stakeholders locked up DOT in favor!https://t.co/zFSxsozsSF pic.twitter.com/5juKOWUTOo— Polkadot (@Polkadot) December 9, 2021

What is a parachain auction? The auctions from Polkadot started on November 11. The winner of each auction gets its own additional chain based on Polkadot's network, the parachain. Each parachain acts as a separate blockchain, but has built-in interoperability with the rest of the network's parachains. The auctions use a modified version of the candle auction format, meaning that no one will know when the bidding ends. The winner is determined by the number of the DOT tokens blocked by users.

What is the essence of the winning project? Parallel Finance is the DeFi institutional-level lending protocol adapted for Polkadot. With Parallel, the users will be able to place their DOT and KUS (exchange token) in exchange for tokenized derivative rates with an additional fee. In addition to the lending utilities, the project will also create and brand the user interaction interfaces based on Polkadot.

Author: