Various DEFI functionalities of Parallel Finance that came live since last month
Since Parallel Finance's Defi functions got initiated last month, liquidity pools, yield farming and swap functions were enabled in the protocol. Therefore, users were able to stake their various assets that they had in their Parallel Finance account.
So, Para and various cDOT tokens that users received in their Parallel Finance account could be utilised where these assets could be staked in liquidity pools, and the LP rewards earned from liquidity pools could be lent in the Money Market. Swapping between these pairs also came live early and borrowing against deposited collateral was also possible.
All these I have explained in detail in my previous articles -:
- More rewards for LP providers with the Yield Money Market functions of Parallel Finance
- Parallel Finance expands its utility with Defi functions having initiated in the platform
DOT asset can be utilised in Parallel Finance with XCM feature enabled in Polkadot
However, it was not possible to use DOT in Parallel Finance yet because it was not yet possible to transfer DOT from one's Polkadot relay chain account to our Parallel Finance's parachain account. This was because Polkadot's XCM feature that will enable cross-chain messaging was not yet launched on Polkadot.
However, recently this week on May 5th, XCM feature was integrated into Polkadot which allowed for parachain communication. XCM made it possible for users to transfer their DOT from the Polkadot Relay chain to Parallel Finance and back.
Hurray, for now utilizing DOT in Parallel Finance is now possible.
Liquid Staking DOT, a opportunity to earn yield on your idle DOT
On May 5th, Parallel Finance introduced liquid staking DOT. There is 14.5% APY yields for liquid DOT staking, apart from lucrative Para rewards. This has attracted over 367,132 Dot worth about $5.22 million to be locked in protocol within the 2 day period at the time of writing.
DOT Liquid staking in Parallel Finance
However, that's not all because it's liquid staking DOT, so the DOT that you stake here is liquid for you to use on Parallel Finance's Money Market.
Liquid staking DOT gives sDOT that can be used in Money Market to earn yields
That's right, in liquid staking DOT you stake DOT and receive sDOT that you can use in Parallel Finance's Money Market where you can lend your sDOT for earning further APY yields and para token rewards. You can also borrow against your sDOT collateral.
sDOT from staking in DOT liquid staking module can be used in [Parallel Finance's Money Market](https://medium.com/r/?url=https%3A%2F%2Fapp.parallel.fi%2F%23%2FlendAndBorrow
Right now a minimum of 5 DOT is required for staking in DOT liquid staking module to avail sDOT. However, even if you have less than 5 DOT and can't participate in DOT liquid staking, you can still use your DOT in Parallel Finance's lend market in Money Market and earn APY yield and Para token rewards.
Always maintain more than 1 DOT balance in your Polkadot.js wallet to prevent loss of DOT
A valuable tip to all you DOT users, please maintain more than 1 DOT balance on your Polkadot .js wallet because by mistake if your polkadot.js wallet account ends up containing less than 1 DOT, it will unfortunately be lost forever.
Incase, after accounting for DOT transition fees there is going to be less than 1 DOT balance in your polkadot.js wallet, just make sure you use or transfer the entire DOT amount you have in your polkadot.js wallet, instead of making a mistake of leaving a amount less than 1 DOT in your wallet.
When doing transactions using Polkadot.js wallet you can always check mark the option of 'Transfer with account keep -alive checks', this will safeguard you from doing a transaction that will leave less than 1 DOT in your Polkadot.js wallet.
You can read more about this here - https://support.polkadot.network/support/solutions/articles/65000169248-error-balances-transferkeepalive-
About Parallel Finance
Parallel Finance is a DeFi Super App aiming to be a one stop Defi shop for people to engage in Defi, it's built on Polkadot. Focus of Parallel is to bring innovative functions to its platform so people can engage in capital efficient Defi. The aim is to make an easy to use Defi platform with beneficial financial services that will attract 1 billion people to use services of Parallel Finance.
Know about Parallel Finance -
Website - https://parallel.fi/index.html
Twitter - https://twitter.com/ParallelFi
Discort - https://discord.gg/DeyEntFT
This Author's articles can also be read on these platforms -
https://medium.com/@kikctikcy
https://www.publish0x.com/@greenchic