Parallel Finance

parallelfinance

My journey in the world of technology and entrepreneurship began with a simple but profound observation during my early years. I saw that many children lacked the fundamental money-saving skills that are essential for financial independence. Inspired by this, I embarked on a path of innovation that has shaped my life’s work. Childhood Coding and Robotics: A Foundation of Innovation My initial motivation to delve into coding and robotics came from a desire to address a fundamental issue: children’s financial literacy. I noticed that young individuals were often overindulged by their parents, leading to a lack of money-saving skills. To address this challenge, I drew inspiration from my own experiences. My parents used a unique system that rewarded me with monetary incentives based on my “good behavior points,” meticulously recorded in a notebook. This system not only encouraged responsible behavior but also taught me the value of saving. This childhood experience laid the foundation for my innovative journey. Alisimba: An Innovative Solution for Financial Education Motivated by my childhood experiences, I founded Alisimba during my high school years. Alisimba was not just a project; it was a vision to provide children across China with a tool to learn essential financial skills. I envisioned an interactive smart piggy bank that could engage and educate children about money matters. Over five years of dedication and hard work, I developed over ten iterations of the “smart piggy.” This journey culminated in a remarkable achievement — Alisimba’s acquisition by the Tophacker Group. Robotics and a Grandfather’s Struggle My passion for innovation extended beyond financial education. During my summer stays at my grandparents’ house, I witnessed my grandfather’s daily struggles with Parkinson’s disease. This experience fueled my determination to create technology that could assist him. Thus, I embarked on a mission to develop a QR code-following robot capable of delivering items my grandfather needed, such as his cell phone and newspaper. My efforts bore fruit when the robot won first prize at the China Robotics Competition, a testament to the power of innovation in addressing real-world challenges. The Evolution: Alisimba, Skylight Investment, and 8 Decimal Capital My journey through Alisimba laid the groundwork for my subsequent ventures. Co-founding Skylight Investment, securing $10 million in funding, and focusing on Deep Tech startups further sharpened my entrepreneurial acumen. However, it was the creation of 8 Decimal Capital in 2017, a blockchain and DeFi investment firm with a diverse portfolio of 40+ companies and $60 million in Assets Under Management (AUM), that marked a significant milestone. These experiences equipped me with valuable insights into team leadership, talent selection, and conflict resolution, which have proven instrumental in my journey. Parallel Finance: Navigating Challenges and Successes Parallel Finance, launched in 2022 with the backing of Sequoia, Founders Fund, and Coinbase Ventures, has been a transformative venture. Within seven months of its inception, Parallel’s Total Value Locked (TVL) surged to nearly $900 million, an achievement I was immensely proud of. However, the onset of a bear market brought challenges, including internal conflicts that tested my leadership. These challenges reinforced the importance of integrity and moral standards when building a team. The Future of DeFi and Parallel Finance My long-term vision for the DeFi space envisions it as an integral part of billions of people’s daily lives. DeFi will serve as the backbone of finance, with transactions seamlessly processed through Layer 2 (L2) and Layer 3 (L3) networks. Parallel Finance is poised to play a central role in this transformation, dominating trading, lending, and staking activities within the DeFi landscape. Educational Journey and Decision-Making My unconventional educational journey, marked by leaving high school early and twice departing Stanford University, has profoundly influenced my entrepreneurial path. These experiences nurtured critical thinking and innovative decision-making skills, shaping the core values and culture of Parallel Finance. The Future of Parallel Finance Parallel Finance’s ultimate goal is to become the heartbeat of DeFi, serving a billion users globally. To achieve this, we are committed to developing a Layer 2 (L2) network that redefines the user experience. This includes eliminating gas fees, implementing account abstraction wallets for secure access, and integrating real-world assets into our blockchain. The journey continues, and I am excited to see where innovation takes us next. As I reflect on this journey, I am reminded that innovation begins with a simple observation, a spark of inspiration, and the determination to turn ideas into reality.

From Childhood Coding to Leading Parallel Finance: My Innovation Journey

Financial literacy is an essential life skill, yet it often receives insufficient attention in traditional education. As we stand on the precipice of a rapidly changing economic landscape, there has never been a more critical time to empower the next generation with the knowledge and tools to navigate the complex world of finance. In this article, we'll explore why teaching young talents about money is of paramount importance and how it can shape their future. Building Financial Foundations Financial education lays the groundwork for responsible financial decision-making. Young talents need to understand the basics of budgeting, saving, and investing to manage their finances effectively. By instilling these principles early, we equip them with the ability to make informed choices about their financial future. Navigating a Complex Financial World Today's financial world is intricate and interconnected. From digital payments and cryptocurrencies to complex investment instruments, young talents are faced with an array of financial options. Teaching them about these intricacies is not just about preventing financial pitfalls but also about enabling them to seize opportunities and build wealth wisely. Cultivating Responsible Spending Habits Consumerism is pervasive in today's society, making it essential to teach young talents about responsible spending. Financial education helps them distinguish between needs and wants, encouraging mindful consumption. When young individuals understand the value of money and the consequences of impulsive spending, they are better equipped to prioritize financial goals. Preparing for Financial Challenges Life is full of unexpected twists and turns, many of which have financial implications. When I was just 17, I created one of the first financial education robots in China, helping over 10,000 kids learn the habits of saving. Teaching young talents about emergency funds, insurance, and contingency planning helps them prepare for unforeseen challenges. This knowledge provides a safety net, reducing the stress and financial strain that can accompany unexpected events. Fostering Entrepreneurship and Innovation Financial education also nurtures entrepreneurial spirit and innovation. It encourages young talents to think creatively about wealth creation, entrepreneurship, and investment. By empowering them with the skills to manage their finances effectively, we enable them to turn their ideas into viable ventures and contribute to economic growth. Encouraging Financial Independence Financial independence is a goal for many young talents. It allows them to pursue their dreams, whether it's traveling the world, starting a business, or supporting causes they care about. A solid foundation in financial literacy is a key stepping stone towards achieving this autonomy, as it empowers them to make informed choices about their income, expenses, and investments. Bridging the Wealth Gap Financial education also plays a crucial role in bridging wealth gaps. It provides individuals from diverse socioeconomic backgrounds with the knowledge and skills to improve their financial situations. This empowerment can lead to greater economic equity and opportunities for all. Conclusion Teaching young talents about money is not just about dollars and cents; it's about empowering them to shape their lives and contribute positively to society. As educators, parents, and mentors, it's our responsibility to ensure that financial literacy is integrated into their education. By doing so, we equip the next generation with the tools they need to make informed financial decisions, achieve their goals, and contribute to a more financially secure and equitable future. Financial education is an investment in their future success and the well-being of society as a whole. About the Author: Yubo Ruan is a prominent figure in the tech and investment industry, boasting 13 significant science and technology invention awards and 5 patents. During his high school years, he founded Alisimba, an educational platform dedicated to children's financial education, which was later acquired by the Tophacker Group. Yubo also co-founded Skylight Investment, securing $10 million in funding and focusing on Deep Tech startups. In 2017, he initiated the establishment of 8 Decimal Capital, a blockchain and DeFi investment firm with a portfolio of 40+ companies and assets amounting to $60 million AUM. Additionally, he launched Parallel Finance in 2022, backed by Sequoia, Founders Fund, and Coinbase Ventures. Yubo's educational journey, including his time as a Stanford dropout, encompasses studies in computer science, finance, and economics. His latest project, Parallel Finance, with $130 million in Total Value Locked (TVL).

Empowering the Next Generation: The Importance of Teaching Young Talents About Money

Ishan Pandey: Hi Yubo, welcome to our series “Behind the Startup.” Please tell us about yourself and the story behind ? Parallel Finance Sure! My name is Yubo Ruan, and I’m the founder of Parallel Finance. Yubo Ruan: Ishan Pandey: Please tell us a bit about the decentralized money market protocol and how does it work? So essentially, you can think about it as an autonomous driving bank in the sense that the smart contract will be in charge of lending, borrowing, and calculating interest rates. The whole process is transparent and decentralized. Users can either lend out their spare tokens to earn interests or borrow cryptocurrencies they need with valid collateral. Yubo Ruan: Ishan Pandey: Can you explain the leveraged staking model to our readers and how can one amplify their staking yields? In the Polkadot ecosystem, users can get roughly 14% as a normal staker on their DOT. Since our protocol offers Money Market, we can achieve leveraged staking by combining Money Markets with Liquid Staking protocols. Moreover, users can use their staking token (xDOT) as collateral to borrow more DOT and restake. As long as the borrowing rate of DOT is lower than staking APY, users can achieve higher returns and thus, we called it leverage staking. Yubo Ruan: Ishan Pandey: What exactly is a Parachain Crowdloan and what are some tips you’d like to give to our readers who might want to participate in crowdloans? Parallel Auction Loan product is a new way of raising a crowd loan campaign in the Polkadot Ecosystem. The most significant benefit of product users is that they can get liquidity of their locked DOT through cDOT token, whereas the transitional crowd loan requires 2 years locked up of their DOT. Yubo Ruan: Ishan Pandey: DeFi is a fast-growing segment of the cryptocurrency market that offers to provide traditional financial products without the involvement of regulated intermediaries like financial institutions. According to you, should DeFi be regulated? Yes, I think in the long term, DeFi should be regulated. It is actually better for the full industry adoption. With clear regulation guidelines, more institutions can participate in DeFi, which will provide deeper liquidity and secure the stability of the DeFi interest rate. As more institutions are involved, it serves as a good reputation to attract more retail users who never heard about DeFi to jump onboard. In my opinion, DeFi means a new financial system is building on top of smart contracts and blockchain with self-custody, transparent governance features. It doesn’t mean any regulation! Yubo Ruan: Ishan Pandey: What are your thoughts on the rising popularity of the Solana and Cardano ecosystems? I really like Solana. In fact, I’m an early investor to Solana. Both of them will have a substantial market share in the blockchain space. Each has a different trade-off between security, decentralization, and scalability. Solana, for example, has better scalability but worst decentralization compared with Ethereum. However, in real-life, many people care about scalability (low fees, fast confirmation time), and they are fine with less decentralization. Thus, I think Solana can serve the demand for those users very well. Yubo Ruan: Ishan Pandey: What does the roadmap ahead look like for the Polkadot ecosystem as a whole? Parallel wants to be the most prominent DeFi builder who can bring 1 billion people to use the DeFi and Web3 products in the next ten years. I think all big brands should be part of the NFT landscape. NFT is one of the best ways to increase community engagement for big brands. All NFT holders feel true ownership and will market the brand very hard. Two years ago, the whole NFT space had almost nothing that existed besides crypto kitties. Yubo Ruan: Today, according to nftgo.io, the total NFT has a market capitalization of $16.8B with over 22M different NFTs. I don’t think big brands should ignore any industry with a speed of growth like this. How do you expect NFT use-cases to evolve in the coming years? NFT holders need finalization. I think a specialized money market for NFT will start to emerge in the short term. On the one hand, similar to Airbnb, users can rent NFT that they like to capture the economic utility (airdrop and royalty sharing) and usage right (in-person community meeting right, etc.). On the other hand, NFT owners access credit lines by using their NFT as collateral. I think an on-chain crowd NFT appraisal platform will exist in the long term. Currently, the pricing of NFT is one of the most significant issues for DeFi platforms to accept NFT as collateral. If someone can solve it, I think we can price everything in the world, such as your house, art, etc. Disclaimer: The purpose of this article is to remove informational asymmetry existing today in our digital markets by performing due diligence, asking the right questions, and equipping readers with better opinions to make informed decisions.

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