Auction Loan - Parachain Crowdloans
Updated: v1.5
Parallel’s Auction Loan platform is now live! The platform is available for the global community and investors to support projects bidding for a parachain slot through a crowdloan. This is important to the Polkadot and Kusama ecosystem because we provide a capital efficient mechanism for users to contribute and we do this through a user-friendly experience. Through Parallel’s platform, both the ecosystem and community benefit in many ways:
  • Multi-layer rewards and higher returns: Parallel partners with networks in the Polkadot ecosystem to provide bonus rewards to the community. In addition to the crowdloan’s base rewards, both Parallel and the participating project will give an additional x% bonus based on the contribution amount.
    • For example, from Parallel's platform, a 10K DOT contribution in project A can earn a bonus of: Base reward + 40K $PARA bonus + up to XX% extra of the participating projects’ native tokens.
    • Contributing on PolkadotJS portal or through other means will not get that same reward bonus for the same amount contributed.
  • Stay liquid: Contributors who support the crowdloans through Parallel’s platform will receive a derivative token (cToken). This can be used to claim the KSM/ DOT assets after a projects’ lease period, which can be up to 48 weeks on Kusama and 24 months on Polkadot. During the lease period when the KSM/ DOTs are locked in the parachains, users can utilize the derivative token in our money market platform and AMM (after our parachain launches). This reduces the users' risks from the lock up period and allows them to stay liquid.
  • Access to liquidity: Projects on both the Kusama and Polkadot networks have direct access to the liquidity they need to bid in the parachain auctions. Ultimately, this helps diversify the Kusama and Polkadot ecosystems by enabling projects the ability to source funding from a greater network of investors and global community to launch.
  • Delightful and simplicity: Currently, there are a few methods to contribute (project websites, PolkadotJS, wallet apps), but there isn’t one platform that allows users to simply contribute on the different active crowdloans. Parallel solves that and enables users an efficient and simple way to contribute in 3-clicks. Contributors can also see a dashboard of the campaigns, the progress, and rewards/ bonuses all in one view.
Read on to learn more.
Last modified 24d ago
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