The Official Folks Finance xChain Testnet Guide

Folks Finance is weeks away from launching their crosschain lending protocol, xChain, on some of today’s biggest blockchains. But first, the testnet — time to experiment.

Folks is the solution for people who enjoy the best of all chains; who travel between networks; who have friends in every community; who reject tribalism, and who see the benefits in mending a broken system. Smart folks use Folks isn’t just a phrase — it’s the truth.

It’s the place to Lend and Borrow on Avalanche, Base, and Ethereum, with Arbitrum, and BNB following shortly after. More integrations are planned throughout the year.

To get right into the fun, check out the “Subway Riders” quests to get OATs (Onchain Achievement Tokens). Plus, you could win some of 500 USDT by simply subscribing to the Folks newsletter.

Click here to subscribe to the newsletter.

Click here to go to Folks’ Galxe page.

Click here to go to Folks’ Docs.

Let’s get into the details.

Folks in 30 Seconds

Folks Finance is the largest DeFi app on Algorand, with an all-time-high of $220 Million in TVL reached earlier in 2024. Offering a full suite of DeFi tools, it’s a one-stop-shop for portfolio management. Deposit, borrow, and collect interest in the Lending Markets, keep your liquidity with Liquid Staking, get extra exposure with Ultraswap’s loan looping, and exchange assets at the best price with Folks Router, the in-house DEX aggregator.

Equipping you with powerful yet simple tools, Folks provides the environment to craft an onchain strategy that fits your needs. Now, it’s time to expand that toolkit to more chains, starting with the Lending Markets.

What can you do in the Testnet?

The point of this testnet period is to experiment risk-free. Try out the app, give your feedback, and see if you can uncover any bugs to squash before mainnet.

On the testnet, you’ll be able to:

• Create an account and connect addresses
• Create and manage loans
• Deposit assets from all integrated chains
• Collateralize assets
• Borrow assets
• Repay loans

Bug Bounty

For the auditors and white hats, check out the public audit contest for Folks Finance on Immunefi, with a $100,000 bounty.

https://immunefi.com/boost/folksfinance-boost/

Keep scrolling to find in-depth tutorials for every testnet action.

Connecting Chains and Unifying Liquidity

Think of Folks as a subway system which connects different neighborhoods. You’ll be able to access Folks and take action on any integrated chain without needing to stress about the common crosschain issues — those are all taken care of in the background. No matter where you want to go, Folks is the most convenient way to get there.

Deposit to any chain, borrow from any chain, all in one account.

However, there’s another key benefit to Folks’ design: unified USDC liquidity. Stablecoins, being the most in-demand asset in lending markets, benefit from deeper pools with more entrances and exits. In Folks’ unified USDC pool, every network’s USDC deposits are combined, which facilitates more consistent rates and enables larger borrowable amounts. In a world of small ponds, Folks is a lake.

How to use Folks’ Testnet

Testnet Asset Faucets

Below, you can find short tutorial videos for every action to test on the xChain testnet. Find more in the xChain Docs.

Connect Wallet

Connect wallets such as Metamask, Coinbase Wallet, and Rabby.

Faucets

Get testnet assets to use on the xChain app.

Create Account

First, create your account.

Link Address

Link addresses to connect to more chains.

Invite Address

Invite addresses for a collaborative experience.

Deposit

Collect yield on your deposited assets.

Create Loan

Create a loan to start borrowing.

Collateralize

Collateralize assets to enable borrows.

Borrow

Borrow on any connected chain.

Repay

Repay to unlock your collateral.

Reduce Collateral

Reduce collateral to close your loan.

Delete Loan

Delete your loan to clear your position.

Withdraw

Withdraw to get back your deposits.

Infrastructure Partners

The Folks xApp is powered by best-in-class infrastructure partners.

Chainlink CCIP: Chainlink CCIP provides a single simple interface through which dApps and web3 entrepreneurs can securely meet all their cross-chain needs. You can use CCIP to transfer data, tokens, or both data and tokens across chains.

Wormhole: Wormhole is the leading interoperability platform that powers multichain applications and bridges at scale. Providing developers access to liquidity and users on over 30 of the leading blockchain networks, Wormhole enables use cases spanning DeFi, NFTs, governance, and more. Trusted by teams like Circle and Uniswap, the platform has facilitated the transfer of over 40 billion dollars through over 1 billion cross-chain messages.

Circle CCTP: Cross-Chain Transfer Protocol (CCTP) is a permissionless on-chain utility that facilitates USDC transfers securely between blockchains networks via native burning and minting. Circle created it to improve capital efficiency and minimize trust requirements when using USDC across blockchain networks. CCTP enables developers to build multi-chain applications that provide secure, 1:1 transfers of USDC across blockchains for their users.

Thanks for reading the xLending Testnet Guide. Join our communities to leave us feedback about xChain, and stay tuned to our social channels to keep up with the latest from Folks!

About Folks Finance: Folks Finance is a pioneering DeFi platform that offers cross-chain lending, borrowing, staking and trading. With a focus on security, efficiency, and user empowerment, Folks Finance delivers a user experience akin to centralized exchanges, setting a new standard for DeFi applications.