Folks Finance chooses Avalanche for its cross-chain lending app

Folks Finance recently announced that they are choosing Avalanche for its cross-chain lending app. The DeFi hub offers leveraged trading, lending, liquid staking, on/off ramp, leverage liquid staking, and swaps.

Given Folks’ well-rounded product suite, users find it robust and flexible for multiple market strategies. Folks Finance’s latest post sheds light on why the platform chose Avalanche for its lending app.

As an L1 blockchain built on Ethereum, Avalanche excels as an all-round network with strong security, low fees, and high speed. The network boasts 100,000 daily active customers, making it a major player in the NFT, gaming, and DeFi arena.

Folks Finance aims to emerge as a prominent player in the Avalanche DeFi ecosystem. With Avalanche as the core of its product line, Folks Finance can develop unique tools, such as margin trading and leveraged liquid staking without futures or perpetual contracts.

The upcoming Folks cross-chain lending app is based on an intuitive hub-and-spoke model. Avalanche will act as the connective junction amid the spoke-chains. It will help capital and information flow between networks using Chainlink CCIP and Wormhole.

As the Hub Chain, Avalanche will also operate a USDC pool accessible to every Spoke Chain. The platform will facilitate stablecoin liquidity with Circle CCTP throughout the ecosystem. As a result, users can borrow huge amounts of USDC compared to restricted liquidity pools in DeFi.

This allows users to enjoy a unified pool with healthy interest rates on stablecoin borrows. Moreover, they can enjoy a lending market with lower volatility and more predictability. For now, their focus is on strategy instead of rates.

While Avalanche is a crucial part of the upcoming endeavors, the Folks Finance team will lead the charge from the front. In 2024, the DeFi hub will try to integrate several other networks, leading to a streamlined DeFi experience.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

Related Articles

Back to top button