DOT Liquid Crowdloan FAQ
Commonly asked questions regarding Parallel's Auction Loan platform. Note that information here may be subject to new updates, reach out to us for any questions you have.
Last updated
Commonly asked questions regarding Parallel's Auction Loan platform. Note that information here may be subject to new updates, reach out to us for any questions you have.
Last updated
How do I contribute to crowdloans?
Check out this step-by-step guide here, this will walk you through contributing for active Polkadot and Kusama crowdloans: https://docs.parallel.fi/auction-loan/auction-loan-platform-features
How do I check 'My Rewards'?
Refer to the guide here - https://docs.parallel.fi/auction-loan/auction-loan-platform-features
The 'My Rewards' section allows you to check the project tokens from winning projects that are available to claim. If the vesting started, you will see an active 'claim' button to allow you to claim your rewards.
In addition, you will see the amount of assets contributed to the winning projects. After the lease period, you will be able to claim your principal, which is guaranteed to be returned to you. For projects that you contributed to and did not win an auction, you can also claim your assets through here. If the transacton is successful, you will see the assets back in your wallet.
Is Parallel's Auction Loan secure?
Yes, we are using a multi-sig wallet and auction bot to provide a highly secure way of contributing with ease. Our solution batches transactions to submit to the relay chain and funds are secured using multi-signature (multi-sig) accounts.
What is multi-sig?
A multi-signature account is composed of one or more addresses and accounts cannot be modified after it's created. It has a threshold that defines the number of participating addresses that need to agree on submitting an extrinsic for a call to be successful. [Resource: https://wiki.polkadot.network/docs/learn-accounts]
For Parallel's Auction Loan product, the multi-sig solution is temporary. When we launch on Polkadot, we will be removing the multi-sig ownership to a fully trustless solution. Currently, when users contribute through our platform funds are sent to the Polkadot relay chain through our multi-sig and we don't store your DOTs.
How do you ensure funds are transacted securely?
We selected 12 reputable industry players to join us as multi-sig signers. To ensure funds are transacted securely, we require the approval of these signers. As such, Parallel does not hold or store any of the user's funds. The multi-sig signers are responsible for the custody of the funds entrusted by the users. The contributions are sent to the correct crowdloans automatically by the Auction Bot mechanism.
What is the Auction Bot mechanism?
The Auction Bot is a bot developed, and open sourced, by Parallel. It is in charge of listening for incoming contributions and forwarding them to the crowdloan module. Thanks to Polkadot's proxy system it can never spend the user's funds, it is only able to allocate the funds to the different crowdloans.
Are we able to use the cDOT before Parallel wins a parachain? Or can we use our cDOT on Kusama first? Let say Acala won the first slot, will we be able to start using our cDOT?
You cannot use cDOT until Parallel launches on the Polkadot parachain.
Does cDOT have a vesting period?
Users are able to receive cDOT after Parallel’s parachain launches. The cDOT is immediately transferrable and can be used for different types of DeFi applications on Parallel’s platform.
Do we need to keep cDOT in order to receive project reward tokens?
If you make a DOT contribution to Parallel Finance, you will receive PARA rewards. The sale of the cDOT does not affect your PARA rewards.
What is the supply APY for cDOT?
It will depend on the utilization ratio of the market, but cDot can also be used as a collateral to borrow assets.
Will parachain rewards be directly transferred to our wallets or do we need to claim through Parallel?
You will need to claim through Parallel and you can do this through the ‘My Rewards page in the Auction Loan product. In the near future, we will be launching cross-chain wallet functions so users can easily transfer between chains.
I have more questions, where can I post them and get an answer?
We welcome your feedback and want to help clarify any questions you have. Reach out to us on Telegram, Discord, Twitter, or team@parallel.fi. We will add to this FAQ and make sure our community’s questions are addressed. Thank you for your support!
Twitter: https://twitter.com/ParallelFi
Telegram: https://t.me/parallelfi_community
Discord: https://discord.gg/buKKx4dySW
