FAQ
Algorand is a permissionless, pure proof-of-stake blockchain that offers speed and stable transaction costs compared with other blockchains. Low fees directly reflect in a higher yield for depositors, since they can re-invest profits with high frequency, without having to consider the impact of the fees.
Algorand, thanks to the PPoS, solved the so-called “blockchain trilemma” in which there are three key objectives – security, scalability, and decentralization – Before Algorand, blockchains had to sacrifice at least one of these key objectives for the sake of the other two.
- Ledger wallets
- MyALGO wallet
- Pera wallet
- Defly
- Exodus
- Fireblocks
Folks Finance has strongly believed in the Algorand ecosystem since its inception, and we continue to have this conviction today. Our new liquid governance design reaffirms that commitment by emphasizing the long-term sustainability of governance and DeFi on Algorand.
Specifically, we have made several upgrades, including:
- 1.gALGO is now continuous. There will be a single gALGO asset, no longer connected to a single governance period (unlike gALGO3 which was only for the third governance period). Moreover, the new smart contracts are built to be flexible and adaptable to the future development of the Algorand Foundation governance through xGov.
- 2.New voting system. The ALGO liquid governance will allow Folks Finance liquid governance users to vote on the Algorand Foundation proposals. Folks Finance will vote respecting its governors' choices proportionally.
- 3.No Fees. The new Liquid Governance will not have any fees.
There could be several reasons why this may happen. One thing that may help is to change your connection to the blockchain. This can easily be done via the settings menu in the top right, select node, and then the available alternative node. If the problem is not resolved you can contact Folks Finance support via the available channels.
An Escrow Account is an account that will hold the collateral of your loan until a withdrawal operation occurs.
Due to market volatility, your collateral values may change. The Liquidation Margin helps you to control your loan position status and avoid liquidations. It varies between 0-100% and the closer the value is to zero the closer the liquidation.
All of the tokens supported by the Folks Finance protocol are ASAs (Algorand Standard Assets). Thus, the opt-in operation is required before utilization of them. The Opt-in procedure has to be performed once per token if the asset has not previously been held in the wallet. However, the Folks Finance web app will warn users if the opt-in procedure has not been performed, and support them through the opt-in process. Once all the requirements are fulfilled, you are ready to interact with the protocol.
Yes, the opt-in has a small cost for the Algorand network fee of 0.001 ALGO. In addition, you will also need to keep an extra 0.1 ALGO in your wallet for the minimum balance requirement of being opted-in.
Moving your assets from V1 to V2 will require withdrawing the assets from V1, then depositing them into V2. If you have positions open on Folks Finance V1, you will need to close them before being able to move the collateral.
Folks Finance rewards programs are being migrated to V2. In order to take advantage of these systems, a transition to V2 is encouraged.
You can find information about how interest rates are calculated on the Interest Rate Model page of the docs.
Folks Finance V2 has been audited by three separate firms specializing in web3: Trail of Bits, Vantage Point, and CertiK. Find the audit reports here.
No. Folks Finance uses non-custodial smart contracts which ensure that only the wallet which deposited funds can remove them.
Due to the nature of DeFi, there is no grace period when your loan becomes undercollateralized. If your liquidation margin reaches zero, a liquidator can liquidate your collateral.
A liquidator can purchase some of your collateral in order to keep the protocol’s reserves whole. In return, the liquidator earns off arbitrage between the price they purchased the collateral and the price they sold it.
The FOLKS token is being planned to release in 2023, but there is no specific date chosen. Be careful of impersonations, and stay tuned to our social channels for official information.
Your displayed ALGO balance is the amount of ALGO in your wallet, subtracted by the minimum balance requirement and 1 ALGO for fees.
The difference between stable and variable rates lies in how they are calculated. In fact, while variable rates fluctuate based on market dynamics, stable rates take into account potential fluctuations in the utilization rates of listed assets, ensuring that the user pays a stable amount of interest over time. For more information on how interest rates are calculated, see the interest rate model page of the docs.
The liquidation margin may decrease for a number of reasons:
- 1.
- 2.The price impact of the swap can result in you receiving less in value than what you sent.
- 3.The slippage excess from the swap is not re-added as collateral but remains in your wallet.
Last modified 1mo ago