Folks Finance plans Open-Sourcing and Decentralization of xALGO Liquid Staking
December, 2024
Folks Finance, the leading DeFi protocol on Algorand, is planning to open-source and decentralize xALGO, its new Liquid Staking solution, by selecting trusted community parties to run nodes in harmony with Folks Finance. This will ensure the responsibility of sustaining xALGO for years to come will be distributed to the users of the system.
In the coming weeks, Algorand will transition to a Consensus-based validation system. ALGO holders can stake their ALGO through Algorand Nodes, which are then randomly selected to propose each block according to their online stake. In return for staking, validators will collect yield on their ALGO, sourced from the Algorand block fees and supplemented by the Algorand Foundation in the short-term.
Running a node in Algorand Consensus will require a minimum stake of 30,000 ALGO. As this is prohibitively expensive to many users, as well as a technical challenge, a simpler solution is needed. xALGO by Folks Finance will solve these problems by providing the easiest, highest-rewarding Liquid Staking Token with the most amount of utility in Algorand’s ecosystem, competitive yields, in-app bonuses, and synergy with the full suite of DeFi tools on Folks.
In preparation for the open-sourcing of xALGO’s code, Folks has partnered with Immunefi to establish an Audit Competition with $30,000 in prizes up-for-grabs. From December 9th to December 19th, 2024, the Audit Competition will be live. Starting December 6th, minting xALGO using the older version of the smart contract, will be paused as a precautionary measure during the competition. Burning remains unaffected. Additionally, this audit competition holds significance as the first Immunefi Audit Competition in Algorand’s history — an opportunity to open the gates and invite developers to enter Algorand’s ecosystem.
Folks is prepared for the major transition to Algorand Consensus, which is planned to go live in January, 2025. For minting & holding xALGO, you can collect points in Folks Finance’s ongoing points campaign.
Join the xALGO Audit Competition here.
With over $400M in TVL ATH and more than 18000 MAUs across 6 chains, Folks Finance offers crosschain lending, borrowing, staking and trading with the security and optionality of traditional finance on a foundation of transparency and decentralization, empowered by onchain tech.
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