Parallel

Parallel (PAR) is a decentralized, non-custodial, over-collateralized stablecoin pegged to the euro. It is issued through the Parallel Protocol, a platform built on Ethereum, Polygon, and Fantom blockchains. Users generate PAR by depositing approved collateral assets—such as WETH, WBTC, USDC, and others—into vaults. The protocol then issues PAR as a loan against these assets. All PAR tokens are minted and burned through smart contracts without intermediaries.

The protocol uses a minimum collateralization ratio (MCR) and a liquidation ratio (LR) to ensure all minted PAR is sufficiently backed. Smart contract architecture supports automated minting, borrowing, repayment, and liquidation processes. The protocol’s price peg mechanism involves natural arbitrage and interest rate adjustments based on Chainlink price feeds.

PAR is used primarily as a decentralized stablecoin within the DeFi ecosystem. It provides euro-denominated liquidity for users seeking to interact with crypto applications while avoiding volatility. PAR is also utilized in decentralized loans, savings mechanisms, and Automated Market Maker (AMM) pools where it earns interest and supports trading.

The token allows users to borrow PAR against collateral, trade it, or use it within DeFi services on supported chains. Liquidity providers who support PAR in AMM pools are incentivized through yield generated from protocol fees.