Set to be released during this 2Q, Folks Finance will leverage Chainlink's CCIP, Circle's CCTP, Wormhole and LiFi for its upcoming cross chain lending protocol that will natively support dozens of blockchains.

Folks Finance already has a great background creating impressive DeFi products: their current lending platform in Algorand was released in April 2022 and rapidily became the biggest platform in the blockchain. 

Some of the key highlights about Folks current platform are:

• Over 9000 monthly users
• +200 million TVL
• Created the ALGO Liquid Governance that improved the native on chain Algorand Governance
• Expanded to BNB and Avalanche with xALGO, a Liquid Staking token
• Introduced Lending pools
• Created Folks Router, a great Dex aggregator to optimize swaps
• Launched Ultraswap for permissionless access to a liquidity multiplier

With this achivements, Folks embarked in the task to create a lending platform where you could lend and borrow different assets independently of the blockchain.

For this novel taks, Folks has partnered with some of the biggest players in the blockchain and DeFi scene, to provide the best experience to the end users: Chainlink's CCIP, Circle's CCTP, Wormhole and LiFi.

Chainlink's CCIP

Chainlink CCIP is the industry standard for secure cross-chain interoperability across multiple blockchains. Folks will be leveraing CCIP’s arbitrary messaging functionality to build cross-chain Hub & Spoke lending, enabling users to deposit collateral on one chain and borrow assets on another. It's proven track record of the highest security and reliability was one of the reasons it was chosen for this new platform.

Chainlinks CCIP cross-chain messaging protocol has an extended support for EVM chains.

Circle's CCTP

Circle's Cross Chain Transfer Protocol enables UDSC to flow securely between blockchains, unifying liquidity and simplyfying user experience. USDC transfers securely between blockchains via native burning and minting.

It provides a transmission channel and support for native USDC in dozens of blockchains such as: Arbitrum, Avalanche, Base, Ethereum, Noble, Optimism, Polygon and Solana.

Wormhole

Wormhole is the #1 ranked cross chain messaging platform. It leads the way for bespoke multichain solutions and its messaging technology will enable a Hub-and-Spoke model to be created. Wormhole has also proven the value and reliability of their product over the years.

Folks has already integrated Wormhole in it's current Algorand platform, enabling users to use xALGO, a yield bearing version of ALGO available in BNB and Avalanche. The UX was greatly improved compared to Wormholes Portalbridge, allowing a simplified and great experience when minting and burning xALGO.

LiFi

LiFi was chosen to power the swaps and DEX integrations for the platfrom, decision rooted in the techincal achievements and expertise of the LiFi team.

LiFi provides all DeFi liquidity in one API, simplifying the complexity of moving and sourcing assets across a vast amount of blockchain acosystems. LI.FI’s middleware offers DEXs, DEX aggregators, cross-chain bridges, all necessary data sources, and smart order routing.

How will it work?

All these technologies will be combined into a Hub-and-Spoke model to be built using Avalanche as the Hub Chain, chosen for the compatibility with the technologies used, high speeds, low fees and a strong security, with a big community and daily users that keeps on growing.

Folks is working to provide a smooth UX where anyone can connect from their favorite blockchain, using their favorite wallet, without knowing which technology is in the background, ideal for new users or not well versed in dealing with bridges, multiple wallets and such.

Avalanche will be the base where a unified USDC pool will be, which all Spoke Chains can access, leading to healthier interest rates on stablecoins borrows and lending market. Spoke Chains such as ETH, Arbitrum, and Optimism will hold their native tokens as well, minimizing the confusing user experience caused by wrapped assets. Liquidity will be accesible from any connected chain, regardless of the origin or destination.

During the first release of the platform, Ethereum, Optimism and Arbitrum will be the first EVM deployments and starting on Q3 non EVM spokes will be integrated. With this kind of design, every Folks user will interact with the same application regardless of the blockchain they come from, not only combining liquidity, but bringing people closer together, sparking strong community network effects.

More importantly, WEN?

Folks cross chain lending protocol is expected to be released during this 2Q.

According to the latests Folks medium article, Testnet should be live in the upcoming weeks. Both testnet and mainnet "will have integrated systems to monitor participation on social platforms and usage of the app before the $FOLKS token launch coming this summer" So if you needed yet another reason to be anxiously waiting for this new protocol release, there you have it.

--------------

Don't forget to follow Folks Finance to be up to date with all its news:

Website: https://folks.finance

X: https://twitter.com/FolksFinance

Discord: https://discord.gg/folksfinance

Linktree: https://linktr.ee/FolksFinance