The Targeted DeFi Rewards allocated to Folks Finance were successful in boosting activity on Folks Finance and partner DEXs, plus increasing ALGO TVL over the quarter. 100% of the rewards were distributed through the Folks Lending Markets, Lending Pools on Pact, and through marketing incentives. Additionally, many of the TDR were paired with allocations given to other DeFi projects in the ecosystem, which built synergies that support the growth of Algorand overall.
During Q3, Folks Finance launched 3 wrapped assets (wAVAX, wSOL, wMPL) in the Lending Markets. Deposits were incentivized with TDR through an airdrop campaign. A total of over $167,000 has been deposited into Folks Finance between the three assets, attracting users and capital from other blockchain ecosystems to join Algorand DeFi.
The category which recieved the largest allocation was Lending Pools. Lending Pools generate yield from two sources: the Folks Lending Markets and DEX fees. This is possible through the use of fAssets on a DEX, which are derivatives of the assets deposited into Folks’ Lending Markets. In turn, while the deposited assets collect yield via borrowers repaying their loans on Folks Finance, the fAssets accrue fees from swap routers using the fAsset pools on DEXs. The result is deeper liquidity on both Folks Finance and DEXs. The Targeted DeFi Rewards helped drive adoption of this innovation, which we plan to continue incentivizing in the future.
Another portion of the rewards were allocated to incentivizing deposits in key DEX pairs involving gALGO. The maintenance of gALGO’s reliable liquidity depth is essential for keeping gALGO as one of the main assets in the ecosystem.
Some of the rewards were also used to incentivize Consensus Participation through Algo Liquid Governance. This initiative was a success, with consensus participants using Folks Finance rising from 24 to 118, and ALGO committed rising from 6 Million to over 18 Million.
Finally, another portion of the TDR allocated to marketing will be used to promote the launch of the new Ultraswap product through a trading competition.
ALGO-denominated TVL rose from 708MM on July 14th, 2023 to 818MM at the time of writing (September 22nd, 2023), which constitutes a 15.5% increase.
USD-denominated TVL fell from $86MM on July 14th, 2023 to $78MM due to the volatile price of ALGO. This constituted a 9.3% decrease.
Distribution Wallet Address: 3ZYJXLLQMD3K3B62B7ABWVZ53PUTQDWA3AM3TPXUFWLGGYPEGH255UGZK4