Folks Finance Integrates Chainlink Price Feeds and CCIP to Unlock Secure Cross-Chain Lending

Folks Finance has integrated Chainlink CCIP and Price Feeds across the Avalanche, Base, and Ethereum mainnets, leveraging CCIP’s arbitrary messaging functionality to enable highly secure cross-chain lending. By integrating Chainlink Price feeds, Folks has access to high-quality, tamper-proof price feeds needed to support secure markets on our borrowing and lending platform.

CCIP was selected as the preferred interoperability solution due to Chainlink’s proven track record of maintaining the highest standard of security and reliability in the blockchain industry, with CCIP being the only interoperability solution achieving level-5 cross-chain security. 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 historical industry exploits and the billions of dollars in user funds lost due to unreliable cross-chain infrastructure.

Thanks to its principle-driven approach, Chainlink has built one of the largest ecosystems in the blockchain industry and is being established as the industry-standard for blockchain connectivity within capital markets. Connecting Folks to the Chainlink community and ecosystem offers a multitude of growth opportunities that helps Folks get closer to its goals and increase ecosystem adoption.

Folks provides a comprehensive platform for users of all levels to manage their digital assets effortlessly. The non-custodial DeFi protocol utilizes advanced smart contract technology to offer a secure environment for lending, borrowing, trading, and managing assets. Users can deposit assets to earn rewards and leverage these deposits as collateral for loans. The Folks Router DEX aggregator facilitates native asset swaps directly on the platform, enhancing both functionality and interoperability. Folks is dedicated to building a dynamic, user-friendly ecosystem within the decentralized finance landscape.

In order to help enable secure cross-chain lending, Folks needed access to a highly secure and reliable interoperability solution. After reviewing various solutions, the decision was made to integrate Chainlink CCIP because it provides a multitude of important benefits and features, such as:

• Defense-in-depth security — 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 $12 trillion in onchain 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 onchain 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.
• Extendable and 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.

There was an additional need for fresh asset prices that are supplied directly onchain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments. Thus, an oracle network was required to fetch aggregated price data offchain and deliver it onchain to be consumed by our application.

After reviewing various oracle solutions, Folks integrated Chainlink Price Feeds because they provide a multitude of critical features such as:

• High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates more precise global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.
• Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages.
• Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.
• Reputation System — Chainlink provides a robust reputation framework and set of onchain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.

“We are excited to integrate Chainlink CCIP and Price Feeds into Folks Finance. Integrating CCIP was an obvious step to help enable a highly secure cross-chain lending experience for our users. By leveraging Chainlink’s advanced infrastructure, we are significantly advancing our goal of providing a secure, transparent, and dynamic DeFi experience.” — Benedetto Biondi, CEO and Founder of Folks Finance

About Chainlink

Chainlink is the universal platform for pioneering the future of global markets onchain. Chainlink has enabled over $15 trillion in transaction value by providing financial institutions, startups, and developers worldwide with access to real-world data, offchain computation, and secure cross-chain interoperability across any blockchain. Chainlink powers verifiable applications and high-integrity markets for banking, DeFi, global trade, gaming, and other major sectors.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link.

About Folks Finance

Folks Finance offers crosschain 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. Initially a groundbreaking lending protocol on Algorand, Folks has evolved into a dynamic, multichain DeFi hub, leveraging messaging layer technology for expansive growth. With its innovative hub-and-spoke model, the platform offers a seamless, intuitive user experience, abstracting the complexities of cross-chain interactions.

Join the Folks communities here, and get started at folks.finance to learn more.