Folks Finance Protocol is live on Mainnet
April 4, 2022 - After months of hard work, extensive testing, and continued support from its partners and community, Folks Finance, the capital markets protocol for lending and borrowing, is live on Algorand Mainnet today!
The protocol aims to give its users the highest flexibility on DeFi loans with a full set of Innovative Features, intuitive UX, Community centric vision, and built-in composability. Folks Finance is ready to bring FutureFi to the market, presenting its strategy to become the pillar for DeFi loans.
Click here to enter Folks Finance live dApp!
The Protocol Innovations and Pillars
This feature allows Algo holders to commit to the Algorand Foundation Governance delegating Folks Finance. For each Algo committed, the delegator mints at a one-to-one rate gALGO, the Folks Finance Algo twin. Folks Finance receives the voting delegation on behalf of Algo holders, and will redistribute the related incentives to the delegators.
The user no longer has to renounce their liquidity by committing Algo for the period of governance; this will unlock approximately 3 billion ALGOs to be used in Algorand DeFi as gALGOs.
In addition, delegators will no longer need to be concerned about registering to vote, voting, and redeeming prizes within the time limits set by Algorand; all of this is handled by Folks Finance.
The feature will officially launch on April 7, to learn more read the official documentation.
Lock & Earn
Designed to mitigate the pool’s liquidity lacking risk, the Lock & Earn feature is a special deposit that does not allow the user to redeem the funds for a certain period. By having locked funds, the pool liquidity availability increases.
Since the Lock & Earn depositors contribute to the protocol soundness, they earn protocol incentives, increasing their deposit’s APR.
Rewards Aggregator and Incentive System
Folks Finance has a unique incentive system designed for the long term future of the protocol that rewards only “good users” in a sustainable way. Moreover, thanks to the rewards aggregator, the protocol enables external users/protocol to incentivize specific Folks Finance’s pools with their desired asset. The protocol mitigates “Earn&Dump” by giving the possibility to vest rewards to earn more but gradually.
Security and Risk Management
The protocol code has been audited three times to guarantee the highest users’ security, relying on auditing professionals Runtime Verification, Coinspect, and Vantage Point. The protocol’s security improvement continues with the launch of 50K Bounty on Immunefi.
The team’s extensive research brought up the development, and unique economic model. Every crypto pair collateral/borrowable asset has been algorithmically tested, and its behaviour simulated before being launched. When defining the loan parameters, the protocol considers the collateralised asset and the covariance with the borrowed asset to allow the highest LTVs without sacrificing security. Also, the economic design has been well-reviewed and tested through an extensive partnership with cryptecon to ensure the lowest risks for the users.
A Carbon Neutral dApp
Following the environmental Algorand strategy, titled the greenest blockchain, Folks Finance collaborates with ClimateTrade, committing to buying the corresponding amount of carbon credit, which allows ClimateTrade to offset the protocol’s carbon footprint.
After an exceptional Seed Round Fundraising and two great months running on Algorand Testnet, thanks to the Folks community and partners’ support, the protocol is launching on Algorand Mainnet as scheduled.
In the coming months, the team will release the protocol governance token $FOLKS, of which more than 50% will be addressed to the community, confirming our focus on becoming community-driven.
The protocol’s mission is to make loans always more flexible, accessible, and open to the users. Under those targets, the new V2 design is already working to bring more innovation to the DeFi world.
For the Mainnet launch, Folks Finance CEO Benedetto Biondi commented:
“After one and half years of hard work, the protocol is finally live. This milestone is not only ours but of anyone else, from community to partners, that helped and supported us through this long journey! I am delighted with the team’s efforts; this step is just the beginning of a long journey whose goal is to be the reference for the DeFi Lending Industry.”
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