# Parallel V3 Is Live: A Modular, Scalable & Decentralized Stablecoins Protocol

**Published by:** [Parallel](https://blog.parallel.best/)
**Published on:** 2025-09-04
**URL:** https://blog.parallel.best/parallel-v3-is-live-a-modular-scalable-and-decentralized-stablecoins-protocol

## Content

Following the DAO’s approval of PIP-50, Parallel enters a new phase with the deployment of Parallel V3: a modular and scalable stablecoins protocol built for long-term resilience, decentralization, and cross-chain expansion. Parallel V3 replaces the original CDP-based architecture with a fully modular system designed to support multiple assets, chains, and stablecoin types. The protocol combines licensed components with custom-built modules and is entirely governed by the DAO.1. Why Parallel V3?Parallel’s initial architecture was innovative but faced core limitations:Scaling the supply of stablecoins required excessive incentive spendingPeg stability was fragile due to the absence of redeemabilityUpgrades were possible but often risky and complex to implementRather than rebuild from scratch, the DAO adopted a licensed, friendly fork of Angle Protocol’s Transmuter module codebase —a robust and battle-tested decentralized price-stability module —and combined it with new modules developed in-house for bridging, savings, and flash loans.2. Parallel V3 ArchitectureParallel V3 introduces a system where each function of the protocol (minting, burning, redeeming, saving, bridging, and lending) is modular and governed independently. The centerpiece is the Parallelizer Module, which operates as a Price Stability Module (PSM), not a CDP. It allows users to mint or burn Parallel stablecoins by swapping approved reserve stablecoins at the oracle price. Dynamic fees and exposure limits maintain stability, while redemptions remain available at all times for a proportional basket of backing assets—without debt positions or the risk of liquidation.This design ensures:Autonomous reaction to depegs or hacks without governance interventionNo risk of bank runs (thanks to pro-rata redemptions)Exposure management via fee-based rebalancingAdditional modules include: Savings Module Stablecoin holders can stake in ERC-4626-compatible contracts and earn native yield generated by the protocol’s backing. No deposit or withdrawal fees, and no added composability risks.Bridging Module Based on Tunnel with LayerZero’s OFT standard, the bridging system allows seamless movement of stablecoins across chains. It is governed by the DAO and features:Decentralized Verifier Networks (DVNs)Permissionless ExecutorsMint/Burn limitsIsolation Mode and pause functionsFlash Loan Module Parallel V3 introduces protocol-native flash loans where stablecoins are minted and burned within a single transaction. Governance controls the maximum loan amount and fees.3. Governance & LicensingThe protocol is entirely governed by sPRL holders, who control all parameters related to:Stablecoin deploymentModule activation and configurationFees, limits, and risk parametersUpgrades across the entire systemCode is deployed under the following licenses:MIT for core contractsBUSL 1.1 for Parallelizer and Savings Modules (licensed from Angle Protocol)MIT for stablecoins token contracts, and Bridging & Flashloan modulesMimo Labs and Cooper Labs secured the license rights for the DAO but retain no exclusive rights or financial benefit from it.4. Security, Audits & DAO ReimbursementEven though most of the codebase comes from a live and audited protocol (Angle), the DAO commissioned:A full audit by Bail SecurityA partial audit & formal verification by CertoraBoth were completed prior to deployment. Mimo Labs covered the full cost ($200,000) and will be reimbursed by the DAO through this proposal. No profit has been made on this reimbursement.What’s NextThe adoption of Parallel V3 unlocks the protocol’s next growth phase. New stablecoins, starting with USDp, will launch on this new architecture. The DAO now has the tools to scale across assets and chains without compromising decentralization or capital efficiency. Builders, contributors, and users are invited to explore the new protocol and shape the future of its new DAO-governed stablecoins infrastructure. DApp I Discord I X I Docs

## Publication Information

- [Parallel](https://blog.parallel.best/): Publication homepage
- [All Posts](https://blog.parallel.best/): More posts from this publication
- [RSS Feed](https://api.paragraph.com/blogs/rss/@parallel): Subscribe to updates
- [Twitter](https://twitter.com/ParallelMoney): Follow on Twitter