Frequently Asked Questions
Parasol Finance is the first-ever community-governed IDO ecosystem that is built on Solana with the needs of both investors and projects alike.
Staking is the act of securing cryptocurrency assets on a platform or network for a reward or annualized returns that are paid out regularly.
Yield Farming in the cryptocurrency industry is earning an interest on your cryptocurrency investment. The initial investment value grows over the time that the asset is staked or landed out.
A decentralized exchange or DEX is a financial services platform used for trading, buying, and selling digital assets. On a DEX, users are granted the chance to transact peer-to-peer and directly on the blockchain without a centralized intermediary. Decentralized exchanges are often democratically managed with decentralized governance organizations, however, they do not serve as custodians of users' funds. In the absence of a central authority charging fees for services, DEXs are cheaper than their centralized counterparts.
An IDO is an approach to crowdfunding funds for new cryptocurrency projects. It means the project is launching their native coins or tokens through a Decentralized Exchange to be used within the ecosystem and the protocol. It also gives the protocol funds to further develop and pay for business expenses.
A DAO is a community-led entity that has no central authority. It is fully transparent and autonomous. The business rules and activities are decided by the holders of the given governance token, usually through voting processes.
Airdrop is referred to as a token distribution method whereby assets are directly transmitted to user wallets without any charges. Airdrops are also used to raise awareness around a project or as part of a fundraising mechanism.
Non-fungible tokens, or NFTs, are the latest cryptocurrency phenomenon to go mainstream in the industry. Non-fungible tokens, or NFTs, are pieces of digital content directly stored to the blockchain.
They are unique, non-interchangeable, and can represent real-world objects like art, music, video games, and much more. NFTs cannot be replicated on a whim.
They can be traded on a marketplace, staked on a platform, or utilized for many interesting purposes. Which brings us to Parasol Finance’s utility NFTs.
Presently, decisions about Parasol Finance are taken by the core team, however we expect to turn this into a DAO-governed model as soon as possible.