Folks Finance Integrates Chainlink CCIP to Unlock Cross-Chain Lending
We’re excited to announce that Folks Finance will integrate Chainlink CCIP — the industry standard for secure cross-chain interoperability — across multiple blockchains. We’re leveraging CCIP’s arbitrary messaging functionality to build cross-chain Hub & Spoke lending, enabling users to deposit collateral on one chain and borrow assets on another.
We selected CCIP as our go-to interoperability solution based on Chainlink’s proven track record of the highest security and reliability standards in Web3. Furthermore, CCIP is backed by the Risk Management Network — a separate, independent network that continually monitors and verifies cross-chain operations for suspicious activity. This additional layer of security is particularly important given the billions of dollars of user funds lost due to insecure and unreliable cross-chain infrastructure.
The CCIP technology empowering the upcoming Folks product will significantly influence the new standards of building cross-chain dApps. The bridging abstraction brings a seamless UX to the final users. Assets will be transferred between chains without manual bridging operations, which are currently one of the least user-friendly aspects of DeFi. Moreover, the Hub & Spoke model introduced by Folks Finance will redesign the standard Multi-Chain liquidity model, which is inefficient by definition due to the segregation of liquidity across different chains.
In order to help secure our cross-chain lending, we needed access to a highly secure and reliable interoperability solution. After reviewing various solutions, we’ve decided to integrate Chainlink CCIP because it provides a multitude of important benefits and features, such as:
- Time-tested security and reliability — CCIP’s consensus and messaging layer is powered by Chainlink decentralized oracle networks, which have already secured tens of billions of dollars for smart contracts and enabled over $8 trillion in on-chain transaction value. CCIP also features additional layers of protection and reliability via the Risk Management Network and Smart Execution.
- Seamless integration — CCIP offers a unified cross-chain developer experience by providing a single, easy-to-integrate interface. Developers only need to integrate the CCIP Router on-chain to start building secure cross-chain applications.
- Scalable architecture — CCIP eliminates the need for developers to write custom code for chain-specific integrations, while users can interact with any blockchain via a single interface.
- Future-proof — CCIP is built to support continuous updates, such as the integration of new blockchains, the introduction of advanced functionalities, and the addition of other defense-in-depth approaches to security. Thus, integrating with CCIP eliminates future switching costs, should new cross-chain functionalities be needed.
“The team sees opportunity for growth in the broader DeFi industry, where it aims to deliver its DeFi suite to other chains and improve cross-chain interoperability. The team is dedicated to continuous innovation and is constantly exploring new ways to improve its offerings and provide its users with the best possible experience.
Chainlink CCIP helps Folks Finance unlock secure cross-chain lending by enabling interoperability across multiple chains with a seamless experience. Folks Finance and Chainlink are helping enhance capital efficiency and drive the next generation of DeFi.” –<Benedetto Biondi, Folks Finance CEO>
Chainlink is the industry-standard Web3 services platform that has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with a universal gateway to all blockchains.
About Folks Finance
Folks Finance is a leading DeFi platform providing innovative tools for lending, borrowing, trading and managing digital assets, all in one place. Folks Finance streamlines the DeFi experience by providing users with inclusive and accessible financial tools, all while running on permissionless smart contract technology.