Folks Finance - A Review

The decentralized finance (DeFi) space has continued to garner the attention of enthusiasts worldwide. It is no hidden fact that the DeFi space is one of the most sought-after spheres in the entire blockchain and crypto space. Notably, lending and borrowing is also a major aspect of the entire DeFi ecosystem.

In line with this, fast-rising capital markets protocol Folks Finance introduces a seamless and effective way to lend and borrow crypto tokens. Interestingly, the capital market protocol is also built on the Algorand Chain.

This article is a general overview of Folks Finance, its top features, how to lend and borrow on the protocol, as well as other important information.

Before we move on, let’s find out more about Folks Finance.

What Is Folks Finance?

Folks Finance is currently one of the top Algorand-based capital markets available today. The protocol is also well-known for facilitating seamless, decentralized, and permissionless lending and borrowing. This means that interested persons can easily lend their crypto assets to earn passive income in return. Also, interested persons looking to borrow funds will enjoy unrestricted assess to crypto loans. They will, however, need to lock up funds as collateral.

According to reports, Folks Finance’s launch is the result of in-depth research into the world of decentralized finance (DeFi). The protocol also focuses on building a secure and unique financial ecosystem designed to provide users with the most flexible DeFi services. The protocol’s launch is also in response to the important need to scale and improve currently available DeFi lending products.

Folks Finance is also known for several important characteristics. Some of these characteristics include:

  • A Sustainable Incentive System – The system is designed to ensure continued support and stability of the Folks Finance ecosystem. Also, only active users receive rewards, and such rewards are allocated in a sustainable way. This further helps to eliminate the occurrence of “Earn and Dump” reactions.
  • Top-Notch Security – To ensure maximum security at all times, Folks Finance’s source code has undergone at least three different audits.
  • Ease of Use – Folks Finance also focuses on ensuring its users enjoy the best and most seamless experience on its protocol.

Other important features is that Folks Finance is both carbon-friendly and community-centric.

How to Use Folks Finance

There are several major steps to take note of to ensure smooth sailing on Folk Finance. Below is an overview of how to navigate some of the important steps and features to take note of on Folks Finance.

The first step to using Folks Finance is to:

1. Set up Your Wallet

You need to have a functioning Algo-compatible wallet to make use of Folks. There are two major wallets that can be used on the protocol. They include:

  • My Algo Wallet
  • Pera Wallet

You then need to connect the wallet to the lending and borrowing protocol.

2. Next Is to Deposit Your Assets on Folks

After setting up your wallet, you need to deposit crypto assets. This will make it possible to either lend liquidity or have access to crypto loans. Importantly, once a deposit is complete, the user immediately starts to earn rewards from their deposited assets.

ASAs deposits are also compatible with the Folks Finance ecosystem. ASAs are all digital assets minted on the Algorand Chain. They are also known as Algorand Standard Assets (ASAs).

There are two major ways to deposit tokens on Folks, namely:

  • From the user dashboard, and
  • From the custom-built deposit page.

When depositing tokens, users will receive fTokens (fALGO, fUSDC) that can be used to withdraw the deposited assets or locked up as collateral for crypto loans.

Users can also easily view their deposited assets in the “My Deposits” section of the app.

Folks Finance

Source – Folks Finance

3. Withdraw Your Assets

Users will be able to seamlessly redeem and withdraw their deposited assets at any time. However, accrued interest is usually dependent on the user’s initial deposit and how long the deposit stays in Folks Finance before the withdrawal.

4. Lock and Earn

Another important feature of the Folks protocol is the Lock and Earn feature. With the feature, interested persons will be able to lock crypto assets for a specified period of time. In return, they will also earn APR on their deposits as well as Folks reward tokens (frToken).

Folks’ Lock and Earn feature is unique in that users will need to deposit and lock their assets for a fixed period. After the lock period, users will have access to their fToken as well as be able to claim their asset deposits.

Find out more about the Folks Lock and Earn feature below.

Other important features include: fStaking, rebalance, rewards aggregator, ALGO liquid governance, etc.


fToken basically powers the Folks Finance ecosystem. Interested persons can stake them to earn even more staking rewards. They function quite similarly to Algorand (ALGO) governance.

Another important token to Folks Finance is the ALGO token. The token, according to CoinGecko, has a market cap of $2,567,866,816 alongside a 24-hour trading volume of $128,864,147. ALGO is also currently trading at $0.369295. The token has a maximum supply of 10,000,000,000 ALGO and a current circulating supply of 6.9 million ALGO.

In conclusion, according to DeFi Llama, Folks Finance currently boasts of a TVL of $86.39 million. The protocol is also set to completely revolutionize DeFi lending and borrowing.

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