Cross-chain USDC Lending leveraging CCTP: Live on Folks Finance

Folks Finance’s xChain leverages Circle’s CCTP (Cross-Chain Transfer Protocol) to enable seamless and secure cross-chain lending and borrowing with USDC. No matter which network you deposit or borrow USDC on, it’s all facilitated through one unified USDC pool powered by CCTP on Avalanche. This completely eliminates the frustrations and inconveniences of liquidity fragmentation, a major challenge that has affected the DeFi sector as more blockchains have emerged, negatively impacting capital efficiency.

Historically, multichain lending platforms have kept isolated USDC pools on each network. This limits the amount of USDC available to borrow on any one network, meaning users have a challenge accessing enough liquidity when they need it. The total borrowable amount of USDC is limited to liquidity on each chain, creating a disadvantage for users and the ecosystem. Contrast fragmented markets with unified markets, and it’s night-and-day.

To illustrate Folks’ xChain Lending, think about how people use cash day-to-day. You can spend your cash the same way without needing a special currency for the place you spend it. Folks Finance’s unified USDC pool works similarly. The USDC maintains the same utility and availability across all networks — without any wrapping involved — making it easier to get USDC to where it’s needed most.

Another benefit of Folks’ unified USDC lending is the standardized interest rates. Whether collecting interest as a depositor, or paying as a borrower, rates remain the same across all blockchains as well, reducing interest rate volatility.

Circle’s CCTP is key to making this connection seamless. CCTP allows USDC to move safely and efficiently between blockchains, making it an ideal solution for scaling a next-generation USDC market. The combination of Folks and Circle provides a simpler, more accessible way for market participants to enter and exit blockchains at will, deploying the strategy of their choice.

Circle CCTP transfers are combined with Wormhole or Chainlink CCIP messages, using CCTP’s “depositForBurnWithCaller” smart contract function. This allows you to have control over who will receive the USDC and when the USDC will be received. The end result is seamless native cross-chain transfers of USDC with zero additional fees.

While scaling up xChain, Folks’ team is focusing on listing in-demand assets, establishing positive partnerships, and refining its products. Looking toward 2025, Folks plans to launch a mobile app and build out the feature set of xChain to include DeFi tools, which complement the cross-chain lending markets. With a points campaign active, and AVAX incentives being distributed on the protocol for higher yields, there’s never been a better time to try Folks Finance.

Folks Finance offers cross-chain lending, borrowing, staking and trading across a range of elite blockchains. Folks is building a DeFi platform with the security and optionality of traditional finance on a foundation of transparency and decentralization, empowered by onchain tech.

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