Inception Vaults (IV)

The Parallel Inception Vault makes it possible to use any ERC20 as collateral by adding a lending & borrowing layer on top of the Parallel protocol vaults. It enables owners to generate yield with their minted PAR and users to leverage their ERC20 to borrow PAR.

Inception Vaults are only available for PAR on Polygon PoS.

Concept

The Parallel Inception Vault makes it possible to use any ERC20 as collateral by adding a lending & borrowing layer on top of the Parallel protocol vaults. It enables owners to generate yield with their minted PAR and users to leverage their ERC20 to borrow PAR.

The main differences between the inception vault mechanics and the Parallel protocol are the following :

• PARs are lent not minted

• PARs and repaid not burned

• Debt limit is not configured but defined by the AdminInceptionVault PAR balance

Owners

Let's say you have WETH with some minted PAR on the Parallel protocol. The idea is to be able to use those minted PAR to generate more yield or go long on other crypto assets. In order to do so you would most likely have to swap PAR for other assets or possibly provide liquidity. The Inception Vault creates a new way of generating a yield on your minted PAR by lending it out against new ERC20 collateral.

Users

Let's say a new inception vault is created accepting $DOGE as collateral and you happen to have some in your portfolio. You can now deposit your $DOGE in this new inception vault and borrow PAR against it.

Learn more about Inception vault :

• Borrowing

• Liquidating