Folks Finance Integrates Wormhole for cutting-edge Multichain DeFi Expansion
Folks Finance, the leading DeFi application on Algorand, will leverage the power of Wormhole’s unique technology to expand its DeFi hub to multiple new networks. The expansion will be built with multichain compatibility at its core, creating an environment in which a user can easily enter and exit the Folks hub from their favorite chain, using their favorite wallet, with all bridging operations handled quietly in the background.
Currently the largest DeFi application on Algorand, Folks Finance has already established itself with over 9500 monthly active wallets and $180,000,000 in TVL — about 75% of Algorand’s total. The protocol launched in April 2022 with only lending and borrowing, and has since expanded its product suite to include swaps, a DEX aggregator, leverage trading, a fiat on/off ramp, and liquid staking in two forms — leveraged liquid staking and cross-chain liquid staking, available on Binance Smart Chain and Avalanche. Supported by top-tier investors such as Jump Capital, Coinbase Ventures, Borderless Capital, Parafi Capital, OKX Blockdream Ventures and more, Folks is prepared to step into the multichain arena after battle-testing their product for nearly two years.
Selecting Wormhole as an interoperability solution was a straightforward decision. Having proven the value and reliability of their product over the years, Wormhole now leads the way for bespoke multichain solutions. Folks is proud to join the ranks of important projects which constitute the diverse Wormhole ecosystem.
Wormhole’s messaging technology will enable a Hub-and-Spoke model to be built using Avalanche as the Hub Chain. Folks’ design leap-frogs the previous model which fragmented liquidity and divided the communities of legacy DeFi apps. Instead, every Folks user will interact with the same application, not only combining liquidity, but bringing people closer together, sparking strong community network effects.
Stablecoin liquidity, the key ingredient of lending protocols, will be concentrated on the Hub Chain, which allows for significantly higher amounts to be borrowed compared to a fragmented model. Spoke Chains such as ETH, Arbitrum, and Optimism will hold their native tokens as well, minimizing the confusing user experience caused by wrapped assets.
Notably, the beauty of the Folks model allows liquidity to be accessed from any connected chain, regardless of the origin or destination. A user most comfortable on Arbitrum can deposit ARB and borrow ETH from Ethereum. The ARB will remain on its native chain, as will the ETH, simplifying an operation which was previously complex and difficult. Visualize Folks as a system of super-highways which enable capital to flow in ways never before possible.
The Folks Testnet will go live soon in the upcoming weeks, and mainnet will follow shortly thereafter.
Benedetto Biondi:
Folks CEO Benedetto Biondi commented on the integration: “Wormhole is a true leader in multichain technology. They are pushing the industry further and we’re glad to be working alongside them. They’ve been helpful every step of the way.”
Robinson Burkey:
Robinson Burkey, Co-Founder of the Wormhole Foundation, also shared his thoughts. “Folks Finance is utilizing Wormhole to support the next generation of onchain finance. Creating an environment in which users can easily access multiple networks is how we’ll step into the next phase of adoption for DeFi. We’re looking forward to further collaboration with the Folks team over the coming years, and congratulate them on the multichain expansion.”
About Wormhole
Wormhole is the leading interoperability platform for multichain bridges and applications. Wormhole provides developers access to liquidity and users on over 30 of the leading blockchain networks, enabling use cases that span DeFi, NFTs, governance, and more.
The wider Wormhole network is trusted and used by teams like Circle and Uniswap, and to date, the platform has facilitated the transfer of over 40 billion dollars through over 1 billion cross-chain messages.
To learn more about Wormhole, visit the Wormhole website, Twitter, Discord, or blog.
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 with a UI and UX competitive to centralized exchanges, all while running on permissionless smart contract technology.
