Introducing Folks Finance
The capital markets protocol for borrowing and lending built on top of the Algorand blockchain
Until today, DeFi has been a victim of its own success. In just one year, the TVL into decentralized financial applications has increased sharply from $300 million to over $150 billion. However, this incredible growth has shown the limits of current DeFi: accessibility and scalability. This growth is reflected in increased transaction requests on Ethereum, leading to network congestion resulting in slow operations and high gas prices. The cost of using Ethereum protocols, rising in some cases above $50, is affordable only to a wealthy minority.
The future of DeFi cannot be built on such foundations. Instead, it must be created on a blockchain that solves such issues and can promise speed and stable cost of transactions in the long run.
The public, permissionless pure proof-of-stake blockchain of Algorand guarantees the highest level of security, decentralization, scalability, and low cost of transactions. The unique characteristics of Algorand, the brainchild of Turing Award-winner Silvio Micali, make it an optimal Layer 1 solution for building decentralized financial applications also trustable by institutions.
Until today, only very tech-savvy, crypto-oriented people have access to DeFi. For DeFi to reach its full potential, it has to be convenient, friendly, and accessible to everyone. Folks Finance aims to expand the DeFi audience to the traditional finance users by giving them reliable and affordable decentralized financial services.
Under these circumstances, Blockchain Italia has designed Folks Finance, a permissionless algorithmic capital market protocol facilitating lending and borrowing services built and operated on top of the Algorand blockchain. Through the lending operations, Folks users can deposit liquidity and start earning a continuous economic return instantly. Through the borrowing operation, the users can request crypto loans by locking deposited funds as collateral.
The name Folks Finance has been inspired by the mission to open decentralized financial services to the masses, welcoming all sizes of wallets, opening the protocol to global accessibility.
Built for all Folks, the protocol is conceived as community-centric with decentralized governance, giving control to its users. In practical terms, by lending or borrowing, users can earn the protocol’s governance token (FOLKS), and gain the chance to vote and propose future updates of the protocol. Moreover, FOLKS holders will be rewarded with loyalty incentives.
Siloed money market liquidity pools, risk-adjusted credit, health factors, and a strongly incentivized liquidation system combine to make Folks Finance a main pillar of the Algorand DeFi ecosystem.
“We are closely collaborating with the rising Algorand DeFi ecosystem, building all together this new great chapter of Finance. We are committed to open the protocol for permissionless usage and integrate it with traditional finance and institutions. Decentralized Finance has been raised as a freely and ungovernable market, but we firmly believe it must merge the two worlds for upgrading and scaling.”
Folks Finance CEO
From Algorand Inc.
“Algorand was designed to power advanced DeFi applications that bring accessibility, transparency, and scale to financial offerings that don’t require a model with inefficiencies from intermediaries,” said Steve Kokinos, CEO of Algorand. “We’re excited for Folks Finance to add their borrowing and lending protocol to the rapidly expanding DeFi ecosystem, and enable people everywhere to unlock new financial possibilities for themselves.”
From Borderless Capital
“Democratizing access to financial services in a trustless fashion creates huge value opportunities for the capital markets. We are very excited about how Folks Finance is removing the friction and making it affordable for every folk to participate in the future of Decentralized Finance on top of Algorand” said David Garcia, CEO & Managing Partner of Borderless Capital.
From Algorand Foundation
“We are thrilled to welcome Folks Finance, the leading capital markets protocol for borrowing and lending built on top of the Algorand blockchain to the Algorand Foundation family” — Addie Wagenknecht, Head of Global Ecosystems and Technical Operations Algorand Foundation.
Join the Folks Community!
Telegram announcements: https://t.me/Folksfinance