Parallel Heiko Crowdloan

This section will provide information to our community on the Parallel Heiko Crowdloan.

Overview

Parallel Finance is a decentralized money market protocol that offers lending, staking, and borrowing in the Polkadot ecosystem. Similar to the relationship between Polkadot and its “canary network” Kusama, Heiko Finance is the sister network to Parallel. We are building for a decentralized future that empowers the community to increase capital efficiency, security, and accessibility through our leverage staking and auction lending platform.

Parallel Heiko has officially won the tenth slot in the Kusama parachain auctions (batch 2) and have been producing blocks since October 6, 2021. Our crowdloan raised 202K+ KSM from 10K+ supporters - Thank You!! We are excited to launch Heiko on the Kusama network and will be distributing $HKO rewards to our community after.

In the upcoming weeks, we will publish more information on the $HKO distribution and claim process. In the meantime, you can use this site to check your rewards: https://app.parallel.fi/#/

Parallel Heiko’s Markets

Leverage Staking

Once launched, Heiko will offer liquid staking on Kusama. On Heiko’s lending interface, users will be able to compound their KSM stake with greater effectiveness than they ever have in the past, with minimal risk. Leverage staking allows you to lend against your staked assets, to earn interest from staking and lending at the same time. In addition, when Heiko receives the user’s KSM, it stakes them to the network by algorithmically nominating the most reliable nodes on behalf of the user. For comparison, with a custodial staking solution like Kraken, users receive a flat annualized yield of 12%. In this instance, the user does not strictly have possession of their coins, because Kraken takes custody of them. Compare this with Heiko, which is noncustodial and tailored to the users needs, offering APYs as high as 20% when leverage staking is added.

Auction Lending

Parachain auctions give users access to early liquidity via incentives, like the HKO given to our crowdloan participants. Heiko’s auction lending module will amplify this dynamic by allowing Heiko users to lend their DOT and KSM to auction participants for a fixed or floating interest rate, and a percentage of future equity to be determined by the project borrowing. If the borrowers win their parachain auctions, they pay their interest rate for the borrowed coins, which are locked for a defined period of time, usually between six months and two years. If they lose, users have the choice of extending their loan until the next parachain auction, or taking their loan back. When the parachain lease period ends, the coins will unlock from the parachain, and be returned to their lenders. Initiating this utility on Kusama will give Heiko and Parallel the go-to-market brand identity as the official auction lending platform, which will in turn attract the leaseholders launching on Polkadot.