Gov9: Targeted DeFi Rewards Reporting
Folks Finance is a DeFi hub offering lending, borrowing, swapping, and liquid staking.
Summary: Folks Finance’s distribution of Targeted DeFi Rewards remains an important driver of growth on Algorand. During Governance Period 9, TDR were allocated to boost the available yield for depositors and liquidity providers who interacted with Folks Finance assets. The velocity and viscosity of these assets remains healthy, and cross-pollination with other ecosystem projects is as strong as ever, multiplying the beneficial effects of the rewards program.
Wallet Address: 3ZYJXLLQMD3K3B62B7ABWVZ53PUTQDWA3AM3TPXUFWLGGYPEGH255UGZK4
Total Sum distributed in this GP: 1,875,000
Total Sum unclaimed in this GP: 0
Distributions: The most significant allocations during Gov9 went toward incentives for the foundational assets of Folks Finance and Algorand DeFi: ALGO, gALGO, USDC, and USDT. 300,000 ALGO was distributed to Liquidity Providers in the gALGO/ALGO Liquidity Pool on Pact, and another 200,000 ALGO was distributed to those who participated in the gALGO/ALGO Lending Pool. As a reminder, Lending Pools enable depositors to earn yield from two sources at once: Folks Finance Lending Markets and Pact’s DEX fees.
As for the stablecoins, 150,000 ALGO was allocated to boost deposit yield for USDC on Folks Finance, and 50,000 ALGO was allocated to USDt for the same purpose. An additional 300,000 ALGO was distributed through the USDC/ALGO Lending Pool. Finally, 350,000 ALGO was put toward the USDC/USDt Lending Pool. Folks Finance has prioritized rewarding those who will deposit stablecoins and contribute to consistent available liquidity for the platform and ecosystem.
Folks was also the first lending platform to list EURS, the euro stablecoin which recently debuted on Algorand. 26,750 ALGO was allocated to incentivize deposits into the EURS/ALGO Lending Pool, and 26,750 was allocated to the EURS/USDC Lending Pool.
70,000 ALGO was earmarked for a continuation of the Consensus Rewards program for Liquid Governance users. The program has proven successful at driving participation in Algorand consensus. Currently, over 50% of wallets participating in Consensus have joined through Folks Finance.
TVL Changes
ALGO-denominated TVL rose marginally from 704.8MM on October 14th, 2023 to 707.13MM at the time of writing — December 19th, 2023 — which constitutes a 0.3% increase.
USD-denominated TVL rose from $67.43MM on October 14th, 2023 to $138.11MM on December 19th, 2023, an increase of 104%. This is thanks in large part to the rising price of ALGO and other crypto assets listed on the platform.
Marketing Expenses
Folks allocated 130,000 ALGO as a marketing budget from TDR.
50,000 ALGO was used as prizes on the Folks Finance Zealy, which gives users relating to usage of Folks Finance and social media presence. Over 3,400 unique users interacted with the Folks Zealy, 2,314 of those completing at least 5 quests. 22,946 quests were submitted, with 18,867 completed — averaging more than 200 quest completions per day at a 79% success rate! 653 on-chain tasks have been completed since rewards targeted on-chain actions and TVL increases.
40,000 ALGO was used for prizes in the Bulls & Bears Competition, which encouraged usage of the new Ultraswap feature.
A further 40,000 ALGO was added to Consensus Rewards at the end of the quarter, bringing the total Consensus Rewards allocation to 110,000 ALGO during Q4.
Q4 2023 Updates:
Folks Finance integrates Chainlink CCIP to facilitate Cross-Chain Lending
Chainlink’s cutting-edge messaging technology provides the infrastructure necessary to power a cross-chain DeFi hub.
Folks Finance expands DeFi Product Suite with Launch of Ultraswap
Ultraswap allows traders to increase their exposure to the crypto markets by leveraging flash loans in Folks Finance’s markets.
Folks Finance allocates 70,000 ALGO for those who join Algorand Consensus through Liquid Governance
After a successful trial during Gov8, the consensus rewards program was continued in G9, with the baseline allocation of rewards being increased from 50,000 to 70,000 ALGO.
Folks Finance lists SILVER and GOLD Tokens
With each SILVER$ and GOLD$ token being redeemable for 1 gram of the respective metal, this is the first example of real-world-assets on Algorand being usable as collateral for loans.
Please leave us with any comments you might have about the report, or suggestions for what data you’d like to see in the future.
Bitcoinist names Folks Finance in “Top 10 Crypto and Blockchain Companies to watch in 2024”
Folks had the honor of recognition in one of the most popular blockchain news outlets on the web — a testament to the efforts of the team over the course of the year.
Algorand Governance Period 10 begins on January 1st, and you will have two weeks to recommit for the start of the new year!
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.
