Dear DAO members,
Following the approval of MIP-34 by the DAO, we take over the service provided from the previous service provider to the Parallel protocol.
This post will be used to provide monthly updates on our progress, in a constant effort to ensure transparency.
The main objective for the coming months remains the same: close the gap accumulated with competitors over the last 2 years, in order to be able to restart the growth of the protocol while giving time to the team to focus on Parallel V3 for 2025.
We are currently working hard to compensate for the delay accumulated by the previous service provider. However, delays in the initial roadmap are still to be expected, and we have updated the roadmap for a version that correlates with our current development capabilities:
Clear Pending Proposal Execution: Execute approved proposals which have not yet been implemented
Parallel Bridging Module: A product for securely bridging PAR, paUSD & MIMO tokens between any chain (at the time of writing, the bridging module is ready, audited, and the proposal will be published on the governance forum in the next few days)
Parallel Updated dApp MVP: A brand new dApp, supporting upcoming products. (at the time of writing, the dApp is ready and will be deployed in production at the same time as the bridging module)
Parallel Tokenomics Update: A brand new tokenomics, with the aim of aligning the interests of users and the protocol as closely as possible. We expect a release before the end of 2024, however, additional delays can be expected due to potential technical difficulties and audits delays.
Parallel dApp Improvements: Implementation of new features on the dApp. (e.g tokenomics)
Q1 2025 (January - March):
Parallel New Landing Page: A brand new landing page, reflecting Parallel protocol’s new ambitions.
Parallel Soft Visual Rebranding: A soft visual rebranding for a more modern, financial visual brand.
Parallel V3 R&D: Research and development on Parallel V3, with the aim of releasing the protocol in 2025.
Q2 2025 (April - June):
Parallel V3: Development of the V3, with an estimated release date in June-July 2025.
MIP-28 l Ratify the Parallel Insurance Fund We successfully updated the VaultsCore contracts in sync with Mimo Labs (to update the frontend currently in production). We are currently executing the remaining part of the proposal (which may take several weeks).
Parallel Bridging Module:
We deployed the bridging module on testnet following the audits, and it worked perfectly. The proposal to deploy it on Mainnet will be published on the forum in the next coming days.
Parallel Updated dApp MVP:
The dApp is currently in staging, as we patch the final bugs. It will be deployed with the bridging module.
Parallel Tokenomics Update:
We’ve been working on a Proof of Concept to validate the technical choices, and a proposal presenting the new tokenomics will be published on the forum in October.
Whitepapers are rarely read and take a long time to write. We believe that good documentation will be more efficient. (Of course, it can still be discussed with the DAO)
Right now, the DAO and the protocol have no existing legal entity, but it might be interesting to discuss creating one (foundation, association, etc.). Furthermore, as the frontends do not belong to the DAO, but are maintained by external entities, it is up to them to take the necessary legal measures to ensure the legality of the services offered on their frontend (assimilation of the token to a security, etc…).
We’ve fixed the latest bugs and prepared for deployment of the bridging module.
MIMO Token Upgrade:
Following a successful Proof-of-Concept we opened discussions around a migration of the MIMO to a new token. The development of the token upgrade has been finalized and is currently pending audits. The discussion is available here: Discussing a MIMO Token Upgrade
Parallel Tokenomics Update:
Following a successful Proof-of-Concept we opened discussions around an upgrade of the current Parallel tokenomics. Development is currently underway. The discussion is available here: Discussing a New Parallel Tokenomics
On November 30th we detected a bug related to how the fees generated by the protocol are calculated. Following this, in collaboration with Mimo Labs we published a proposal (PIP-39 l Protocol Fees Computation Update) proposing a patch for it and started working on it.
Parallel V3:
We’ve started thinking about Parallel V3 and are studying several possibilities. More information in the coming months.
PAR Instances on Ethereum, Polygon PoS and Fantom have been updated following the voted implementation. Newly deployed contracts are available in the documentation
paUSD Instances on Ethereum and Polygon PoS have been updated following the voted implementation. Newly deployed contracts are available in the documentation
Tunnel, the Parallel Bridging Module is back in production and available for both PAR & paUSD here
Parallel V3:
We have finalized our research phase and begun active development of V3. We are confident in our ability to release a V3 Minimum Viable Product (MVP) during Q2 2025.
Parallel Soft Visual Rebranding:
Cooper Labs has engaged MOM, a web3 design & development agency to work on the soft visual rebranding.
The visual rebranding will be supervised by Cooper Labs, before a formal proposal to the DAO to validate it.
The decision to hire MOM was mainly motivated by the need to move forward quickly and the difficulty of recruiting a good designer. We are currently looking for a UI/UX designer, with a $5,000 bounty for any successful referral.
Note: The costs associated with recruiting MOM are included in the service providing proposal, meaning that there will be no additional costs for the DAO.
White Hat Finding Report:
On February 1st we have been contacted by a white hat who claimed to have found a critical issue on the current version of the protocol and more specifically on the latest version of the bridging module deployed on January 31st.
As the protocol doesn’t have a public bug bounty program, we agreed with him on a maximum payout in the event of a valid issue, partially based on the amount in the insurance fund.
At the same time, we opened a war room with Bail Security, having audited both versions of the Bridging Module, in order for them to analyze with us the validity and criticality of the potential issues raised by the white hat.
After several days of analysis and discussions with the white hat, we came to the joint conclusion on February 6th that the potential issues raised were false positives.
Even though the issues were false positives, it made us realize our lack of capacity to manage security issues, as well as the importance of security. In the next few weeks, we will be publishing a proposal in collaboration with Mimo Labs to set up a public bug bounty program, as well as a proposal for rapid reaction in the event of an attack on the protocol.
In line with the post published (Discussing a MIMO Token Upgrade) we’re working on the MIMO Token Upgrade: (formal proposal to be published in the coming days)
second audit performed by Zenith. Report available here
Backend: Completed
Frontend: Completed
Parallel Tokenomics Update:
In line with the post published (Discussing a New Parallel Tokenomics) we’re working on the new tokenomics: (formal proposal to be published in the coming days)
second audit performed by Zenith. Report available here
Backend: ParaBoost Development completed, currently improving the back office and computation of it
Frontend: Completed
Parallel V3:
We have finalized our research phase and begun active development of V3. We are confident in our ability to release a V3 Minimum Viable Product (MVP) during Q2 2025:
Smart Contracts: Work in Progress, first audit starting March 17th
Backend: Not yet started
Frontend: Design of the MVP Completed, Frontend Integrated coming next
Parallel Soft Visual Rebranding & Landing Page:
Cooper Labs has engaged MOM, a web3 design & development agency to work on the soft visual rebranding.
Soft Visual Rebranding: Completed, to be posted on the forum in the coming weeks with the landing page design
V3 is under active develompment. We are still confident in our ability to release a V3 Minimum Viable Product (MVP) during Q2 2025:
Smart Contracts: Completed. Audit expected to be finished by end of month. Formal verification of critical part of the codebase also started on March 31st for a 4-week period
Backend: Work in Progress
Frontend: MVP currently being implemented
Design: Design of MVP completed in February, whole dApp design currently being made
Parallel Soft Visual Rebranding & Landing Page:
Cooper Labs has engaged MOM, a web3 design & development agency to work on the soft visual rebranding:
Soft Visual Rebranding: Completed, to be posted on the forum in the coming days
Landing Page Design: Completed, to be posted on the forum in the coming days
We published PGP-29 l Marketing & Growth Strategy Phase I in collaboration with Mimo Labs & Spindl to launch a marketing & growth strategy. The proposal has been approved by the DAO.
Smart Contracts: Completed.
Parallel V3 is currently being deployed on the 16 approved chains.
Yield Bearing Assets in backing automatic price update: Completed
Savings USDp (sUSDp) Integration: Work in progress
USDp backing rebalancing keepers: Work in progress
Frontend: Work in Progress
Borrow page: Work in progress
dApp Mobile Version: Work in progress
Design: Completed
BD & Marketing:
We’re currently preparing the launch of the incentives & ads program with partners.
Integration:
Odos USDp mint/burn & stake/unstake contrats integrations: Work in progress
Fly USDp mint/burn contrats integrations: Work in progress
In discussion with additional DEX aggregators to natively integrate USDp mint/burn & stake/unstake contrats
DEXes Protocols:
Partnerships to be announced
Lending Protocols:
Partnerships to be announced
Yields Protocols:
Partnerships to be announced
Note:Team was off the 2 first weeks of August as part of annual summer break. Most teams we’re working with were off this month, thus reducing our ability to announce partnerships.
Launched Parallel V3 & USDp on 16 chains. More details available here.
Protocol:
Smart Contracts:
Deployed Parallelizer & Savings modules on Avalanche
Solved a configuration issue with the scUSD silo vault allowed in backing of USDp on Sonic. More details available here.
Backend:
Savings USDp (sUSDp) Integration: Work in progress
USDp backing rebalancing keepers: Work in progress
Frontend:
Borrow page: Completed MVP with the integration of Morpho. We started the integration of Silo & Euler.
dApp Mobile Version: Work in progress. Currently in internal testing phase, expected to go live later this month.
Mint page:
Improvements of user flow + possibility to add custom token: Work in progress. Currently in internal testing phase, expected to go live later this month.
OpenOcean API integration: Work in progress. Currently in internal testing phase, expected to go live later this month.
GlueX API integration: Work in progress. Currently in internal testing phase, expected to go live later this month.
KyberSwap API integration: Work in progress. Currently in internal testing phase, expected to go live later this month.
Liquid Labs API integration: Work in progress. Currently in internal testing phase, expected to go live later this month.
Gnosis Safe Integration: Rework in progress (requested by liquid funds & big holders)
Investigated a potential issue on our frontend. Found nothing. More details available here & here.
Design:
Earn page redesign: Work in progress
Mint page new user flow + custom token addition: Completed
Others:
Managed several false positives of critical issues in protocol deployed smart contracts & App.
Odos USDp mint/burn & stake/unstake contrats integrations: Work in progress
GlueX USDp mint/burn & stake/unstake contrats integrations: Work in progress
KyberSwap USDp mint/burn & stake/unstake contrats integrations: Work in progress
Liquid Labs USDp mint/burn & stake/unstake contrats integrations: Work in progress
In discussion with additional DEX aggregators to natively integrate USDp mint/burn & stake/unstake contrats
Oracles Protocols:
Proposed the launch of RedStone powered price feed for USDp & sUSDp. Approved by the DAO, more details available here.
Proposed the launch of DIA powered price feed for USDp & sUSDp. Approved by the DAO, more details available here.
Stablecoins Protocols:
Announced partnership with Trevee on Sonic. More details available here.
DEXes Protocols:
Announced partnership with KittenSwap on HyperEVM. More details available here & here.
Announced new pool with Balancer on Base. More details available here.
Announced partnership with Beets on Sonic. More details available here.
Lending Protocols:
Announced partnership with HypurrFi on HyperEVM. More details available here.
Yields Protocols:
Announced partnership with Spectra on HyperEVM. More details available here.
Strategy:
We spent the summer thinking about the best strategy for the protocol: should we focus on v3.1, should we build v3.1 while expanding the protocol, or should we focus on the growth of the protocol? After alot of discussions, we decided to choose the third option and focus on the growth of the protocol.
Parallel V3 now allows us to scale and deploy quickly on new chains (e.g., Avalanche in less than 15 days), moreover demand for stablecoins and yield is growing exponentially. Parallel is perfectly positioned to capture market share.
So what is the strategy?
The Parallel V3 architecture allows USDp to be minted/burned & staked/unstaked at any time for its collateral. This means that DEX aggregators can integrate us as a DEX, allowing them to get the best price for USDp and achieve higher volume.
Assets authorized in the backing obtain instant liquidity, with the protocol acting as a DEX. We sell this instant liquidity on their assets to partners (e.g., Trevee, Frax) while being integrated everywhere via the integration of our mint/burn in DEX aggregators in exchange for co-incentives on common liquidity pools (e.g., USDp/scUSD).
The goal of steps 1 and 2 is to increase liquidity on DEXs for one reason only: to meet the criteria necessary to get price feeds for USDp and sUSDp (e.g., 3x$1M for RedStone). Once the price feeds have been secured, the objective of step 3 is to deploy sUSDp as collateral and USDp for lending on as many lending protocols as possible (e.g., HypurrFi, Silo). Why is this important? Let’s say that sUSDp with a yield of 12% APR is allowed as collateral on a lending protocol against USDC to be borrowed at 6% APR. Someone deposits 1 sUSDp as collateral, borrows 0.95 USDC, swaps the USDC for sUSDp, redeposits it as collateral, borrows USDC again, and so on, obtaining a net yield well above the base sUSDp rate (e.g., 25% net APR). For an initial 1 USDp, between 4 and 8 USDp could be minted via lending loops.
We now have sUSDp available as collateral on lending protocols ready for lending leverage. The question is: who will come and do this strategy? This is where liquid funds enter the game. Over the past 12 months, demand for yield on stablecoins has grown exponentially. Our target is to sell Parallel leverage strategies to these funds. Note: We are already working on each stage of the strategy. We are confident in our ability to reach stage 4 before the end of 2025.
