xALGO: The New Standard for Liquid Staking on Algorand
August, 2024
Folks Finance has officially launched xALGO as the primary Liquid Staking Token for Algorand’s Consensus Rewards. With xALGO, yield can be collected on any amount of ALGO with merely a few clicks, while the liquidity of the stake remains available to use.
Folks is launching xALGO before Algorand’s switch to Consensus to anticipate the tectonic shift to one of Algorand’s core systems. Previously, xALGO was associated with governance rewards, allowing users to stake their ALGO and go crosschain. With the introduction of consensus rewards, xALGO now represents staked ALGO and the relative consensus rewards. xALGO will also now be an Algorand-native asset.
If you stake ALGO and get xALGO between launch and the end of Q3 2024, you’ll be recognized with an xALGO Trailblazer NFT!
Stake ALGO on Folks today.
xALGO Video Tutorial
What is xALGO?
xALGO is a Liquid Staking Token — a DeFi tool allowing value to earn yield while remaining liquid. This is achieved by minting a derivative token which represents ownership over the yield-collecting asset. In the case of xALGO, it is minted and distributed when ALGO is deposited into Folks’ Liquid Staking.
xALGO Docs
Importantly, xALGO is yield-bearing. Its price naturally rises against the price of the underlying asset (ALGO) due to the interest it collects.
For example:
- You stake 100 ALGO and get xALGO, earning a steady 10% APR.
- After 1 year, your xALGO holdings would be worth x1.10 of the ALGO you staked, meaning your stake is worth 110 ALGO.
- When you unstake your ALGO, you will get back the original 100 ALGO, plus 10 accumulated ALGO.
There are powerful advantages to xALGO which make it the best choice for Algorand users.
First, it’s a one-time deposit. Stake ALGO and hold xALGO for as long as you want, collecting passive yield the whole time.
Second, xALGO will be usable for deposits, borrows, and as collateral on Folks Finance, adding flexibility to your strategies.
Third, Leveraged Liquid Staking will soon be available for xALGO users aiming to maximize yield. By combining the xALGO with Folks’ lending markets, unique strategies can be employed.
Finally, xALGO will be usable across the Algorand ecosystem, with integrations planned for DeFi, RWA, art, gaming, and social platforms.
xALGO’s launch will precede the launch of Consensus Rewards on Algorand. For those who want to be early, get xALGO between the pre-launch and the end of Q3 2024 to be recognized with an xALGO Trailblazer NFT.
Stake ALGO and start collecting yield today with Algorand DeFi.
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Folks Finance is an innovative decentralized platform that provides the complete DeFi suite to seamlessly lend, borrow, trade, and manage digital assets across multiple chains. By eliminating the complexities of gas fees, bridging, and network choices, Folks Finance delivers a user experience akin to centralized exchanges, setting a new standard for DeFi applications.
