Lending Pools : Composing DEX & Lending for Higher Capital Efficiency
🚀 Say hello to higher APR and capital efficiency for lenders! Earn trading fees from both DEX pools and the deposit interest rate from lending markets.
In collaboration with Pact, Folks Finance is excited to announce Lending Pools! Liquidity providers will be able to deposit to the lending markets on Folks Finance, plus liquidity pools on Pact.fi at the same time!
Through this composition of DeFi fundamentals, depositors can earn yield from both products simultaneously.
What are Lending Pools?
Lending Pools are DEX pools comprised of interest-bearing assets.
If you use Lending Pools for ALGO-USDC, you will receive:
- The interest from the ALGO deposit
- The interest from the USDC deposit
- The swap fees from the DEX pool
What’s so great about Lending Pools ?
- Deeper liquidity. By providing liquidity to the Folks Lending Markets, plus the DEXs, capital can be more efficiently distributed in the ecosystem.
- Greater TVL. By boosting the efficiency of the deposited assets, TVL across the ecosystem increases.
- Higher yield. By earning both the yield of the Lending Markets and the DEX, your assets work twice as hard for you. Lending Pools will also be incentivized with additional rewards for ALGO, USDC, USDt, gALGO, GARD, wETH, and wBTC.
Lending Pools are a concept which push the boundaries of DeFi. The Folks Team couldn’t be more excited about launching it alongside Pact, and we hope you enjoy the higher yield and improved liquidity it will bring to the ecosystem.
How do I get started?
The Lending Pools will soon be available on pact.fi.
Stay tuned for the Lending Pools release not to miss out on the opportunity to enjoy the early rewards! If you’re new to Folks Finance, start at the Academy.
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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.
