Litentry Crowdloan recently announced a partnership with Parallel. The collaboration will see Litentry Crowdloan offering PARA bonus and cDOT liquidity to its contributors.
The integration will render multiple rewards to the contributors. Here is an overview of the perks:
- Users can earn 4 PARA tokens for every DOT deposited to Litentry via Parallel.
- They can also get cDOT-A derivatives via an auction loan. Plus, the derivatives are restricted by the 2-year locked-up period. They will be liquid assets, which users can collateralize in the lending sector or trade in the AMM market after the launch of the Parallel parachain.
- Early investors can also earn a 10% additional LIT bonus. a) 10% of the bonus is offered to users who contribute before the crowdloan initiates; b) 5% of the bonus is provided when users contribute in the first week of the crowdloan’s initiation; c) 2% additional bonus is shared to Parallel users when they contribute 7 days after the crowdloan’s initiation.
Both cDOT and PARA rewards hold utmost market value with several use-cases. cDOT, Parallel’s native token, can add to the money. Users can also trade it in the AMM market while it is redeemable for DOT after Litenry parachain’s lease ends. If users contribute DOT to the Parallel loan platform, they can earn cDOT with utility.
Users should note that cDOT rewards will be available after Parallel launches its parachain on Polkadot. The expected release of the parachain is 2-3 weeks after acquiring a slot. Afterward, users can immediately transfer cDOT and use it on different dApps.
Similarly, users can earn 4 PARA tokens for every DOT shared via Parallel to Litentry. Parallel will conduct a linear distribution process, starting after the Litentry parachain operates on Polkadot. It will continue till the parachain slot expires.
As Parallel Finance’s native token on Polkadot, users can use PARA for multiple purposes. Given Litentry’s position as an esteemed identity aggregator, Parallel’s move seems natural. Both ventures can benefit from each other’s expertise, ultimately helping the DeFi sector.