# Welcome to Folks Finance

Welcome to Folks Finance official documentations.&#x20;

Initially the leading DeFi protocol on Algorand, Folks has evolved into a dynamic, multichain DeFi hub, leveraging messaging layers technology for expansive growth. With its innovative hub-and-spoke model, the platform offers a seamless, intuitive user experience, abstracting the complexities of cross-chain interactions.&#x20;

In the following sections users can find the official documentations of the two protocols and the point system.

<table data-view="cards"><thead><tr><th align="center"></th><th align="center"></th><th data-hidden data-card-cover data-type="files"></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td align="center">xChain dApp docs</td><td align="center">Access liquidity across multiple blockchains</td><td><a href="/files/1PodbOiYCbrhWvzWJ7Al">/files/1PodbOiYCbrhWvzWJ7Al</a></td><td><a href="https://docs.xapp.folks.finance/">https://docs.xapp.folks.finance/</a></td></tr><tr><td align="center">Point System docs</td><td align="center">Accumulate points for future incentives</td><td><a href="/files/r1A0QOPWL9EmulwZwjbP">/files/r1A0QOPWL9EmulwZwjbP</a></td><td><a href="https://docs.xapp.folks.finance/incentives-program/points-system">https://docs.xapp.folks.finance/incentives-program/points-system</a></td></tr><tr><td align="center">Algorand dApp docs</td><td align="center">Leading DeFi app on Algorand</td><td><a href="/files/gU3CQvVuqy3hYSYO1bQo">/files/gU3CQvVuqy3hYSYO1bQo</a></td><td><a href="/pages/JmiucoE0ZpNiagRa9iEQ">/pages/JmiucoE0ZpNiagRa9iEQ</a></td></tr></tbody></table>


# Folks Finance Algorand app documentation

<figure><img src="/files/fZu2j1tfVXaNYXFRGpU5" alt=""><figcaption></figcaption></figure>

Folks Finance is a non-custodial DeFi protocol providing tools for digital assets. Smart-contract technology empowers Folks Finance to offer advanced strategies while eliminating risks of centralized interference. Users can deposit assets to **earn** yield, as well as use their deposits as collateral for **loans**. Integration of the **Folks Router DEX aggregator** enables native swaps on the protocol and composability with the other operations. **Flash loans** give developers the keys to deep liquidity. **Algo Liquid Staking** provide the most efficient method of participating in the **Algorand staking** through xALGO whose use cases continue to expand rapidly.

#### First time interacting with Folks Finance?

{% content-ref url="/pages/gdqH01oPAPouP25uwmmS" %}
[Get started](/introduction/get-started)
{% endcontent-ref %}

#### Need a step-by-step guide to operating Folks Finance?

{% content-ref url="/pages/Gcii60uFLodOo3lIVS0i" %}
[Functionalities](/functionalities/deposit)
{% endcontent-ref %}

#### Interested in studying the dynamics and mathematical design of the protocol?

{% content-ref url="/pages/u5p1WO7unTFKO6PCVfK6" %}
[Architecture](/architecture/parameters)
{% endcontent-ref %}


# Get started


# Create a wallet

To get started on Folks Finance, the first thing you'll need is to set up a wallet that supports **Algorand**. Wallets are available both on desktops and/or smartphones. You'll need to choose the wallet that fits your needs best. At first use it could be difficult finding the best that suits your needs, don't worry, here is a quick overview:

{% hint style="danger" %}
Please remember that MyAlgo Wallet suffers security exploits – take [precautionary measures](https://twitter.com/myalgo_/status/1632862464244162560?s=20). \
If you need to [rekey](/introduction/need-help/glossary#rekeying) your wallet, please take a look at these guides:\
\- Pera: [https://docs.defly.app/app/rekey-an-account…](https://t.co/PZog8fw0tO) \
\- Defly: [https://docs.defly.app/app/rekey-an-account](https://t.co/PZog8fw0tO)
{% endhint %}

<table><thead><tr><th width="267">Wallet</th><th width="248" align="center">Mobile</th><th align="center">Desktop</th></tr></thead><tbody><tr><td><a href="https://perawallet.app/">Pera Wallet</a></td><td align="center">✅</td><td align="center">✅</td></tr><tr><td><a href="https://defly.app/">Defly</a></td><td align="center">✅</td><td align="center">❌</td></tr><tr><td><a href="https://www.fireblocks.com/">Fireblocks</a></td><td align="center">❌</td><td align="center">✅</td></tr><tr><td><a href="https://www.exodus.com/">Exodus</a></td><td align="center">❌</td><td align="center">✅</td></tr></tbody></table>

Before starting to set up your new wallet, please be sure to:

{% hint style="danger" %}

* **👍 Safely back up your recovery phrases.**
* **👎 NEVER share your recovery phrases with anyone.**
* **👎 NEVER input your recovery phrase to a website or app other than your wallet app.**
  {% endhint %}

### Step-by-step guides

Once choose your favorite wallet, click on one of the following links for a step-by-step guide on how to create it:

<details>

<summary><a href="https://perawallet.app/">Pera Wallet</a></summary>

**Background Info**\
\
The Pera wallet itself is made up of accounts, each with their own unique address, backup phrase, and assets. If you haven't heard these terms before I recommend checking out our other tutorials. However, here's a quick run through:\
\
◾️Your address is a unique string that is used to publicly identify your account. This is what you'll use if you (or others) want to send assets to your account. Your address will look something like this: RL6VDLXCN5G7N2GRTS7YLVDSFT4PVBBUOVTVS7T26OQ5MLXYQKRMI5ADXY\
\
◾️Your recovery passphrase (also called backup phrase or recovery phrase) is the 25-word string that allows you to recover your account.\
It is CRUCIAL to record your backup phrase correctly and store it securely. The only way to recover an Algorand account is with this backup phrase. **Never share your backup phrase, as anyone with access to it can take full control of your account**. The Pera Wallet support team will never ask for your passphrase.\
\
◾️Your assets will include Algos and other Algorand Standard Assets (ASAs) such as USDt, USDC, etc.\
\
This step-by-step tutorial explains to you how to create a new Algorand Wallet Account on Pera Wallet.

[Download](https://perawallet.app/) Pera Wallet.\
\
If you already have access to the Pera Wallet, click the + button from the main app screen, click the + button (Green highlight on the screenshot below), and follow the next steps. However, if you access the wallet for the first time, ignore this step and go directly to the next one.\
\
![](https://storage.crisp.chat/users/helpdesk/website/379e1f50f8575200/7_1n308pz.png)\
\
Tap "I want to create a new account" to add an account to your wallet.\
\
![](https://storage.crisp.chat/users/helpdesk/website/379e1f50f8575200/1_mj803e.png)\
\
Now tap "Create New Account" to begin the flow!\
\
![](https://storage.crisp.chat/users/helpdesk/website/379e1f50f8575200/2_omivgl.png)\
\
At this point, you'll see a couple of screens that give you information about the upcoming backup process. ⚠️\*\*Please review these screens carefully so that you're prepared to write down your passphrase and store it securely.\*\*\
\
Review the account creation overview screen and tap "I understand."\
\
![](https://storage.crisp.chat/users/helpdesk/website/379e1f50f8575200/3_1n3oi4y.png)\
\
Review the important prep details before tapping "I'm ready to begin."\
\
![](https://storage.crisp.chat/users/helpdesk/website/379e1f50f8575200/4_1gd1zb9.png)\
\
At this point, we will show you your 25-word recovery passphrase. There is no screenshot of this page in this tutorial, as we've blocked or limited screenshot capabilities during recording of your passphrase. Even if your device allows you to screenshot your recovery passphrase, we urge you to explore methods other than a photograph to store this important data.\
\
You'll then verify the passphrase has been recorded successfully by selecting a few keywords in the phrase.\
\
![](https://storage.crisp.chat/users/helpdesk/website/379e1f50f8575200/5_58851l.png)\
\
Name your account: at this point, you can name your account for convenience. It will help you keep organized between your different accounts. This doesn't interact with the blockchain at all, it's merely an organizational feature.\
\
![](https://storage.crisp.chat/users/helpdesk/website/379e1f50f8575200/6_194ba0f.png)\
\
That's it! You should see the newly created account on your Accounts view. If this was your first time creating an account, you'll only see 1 account. You can now navigate through the App, add Algos or other assets, and send/receive transactions to other wallets address.\
\
![](https://storage.crisp.chat/users/helpdesk/website/379e1f50f8575200/7_um7fc3.png)\
\
Important Notes:\
\
You can create as many Algorand accounts within the Pera wallet, but each account has its own backup (recovery) passphrase. For security reasons, there is no total wallet recovery, only individual account recovery. Use caution when recording and storing your passphrase. It's the only way to recover your account.\
\
Pera wallet is a non-custodial wallet, meaning that you (and only you) are in complete control over the management of your account and the assets in it. No other person or entity has access to your accounts. This also means that no company, corporation, or government could ever take control of your account. Only the person who has the 25-word passphrase can access the assets. However, with this power comes responsibility. If you lose your 25-word recovery passphrase that unlocks the account, no one can grant you access.

For more information, <https://support.perawallet.app/en/article/create-a-new-algorand-account-on-pera-wallet-1ehbj11/>.

</details>

<details>

<summary><a href="https://defly.app/">Defly</a></summary>

## Add an Account

After [downloading](https://defly.app/) Defly and accepting our policy, you must add an Algorand account to get started. You have three options: create a new account, import an existing account, or add a watch-only account.

## Create a New Account

To start this process, select “New account” and read the “Pro Tip.”

If you would like to move forward: confirm you understand the account creation process, log and verify your secret keys, and name your new account:

<img src="/files/ZnreQ10k1ME6FAB3mTUM" alt="" data-size="original">

## Import an Existing Account

To start this process, select “Import account” and read the disclaimer.

If you would like to move forward: log your secret keys from the existing account by inputting the mnemonic phrase directly or by scanning the QR code of the phrase if you’re using My Algo Wallet.

![](/files/J7ck7KNppq2rmD1DkqDA)

## Watch Account

If you prefer to observe the funds and swaps of an account with the added benefits of the Defly interface, select “Watch account.”

The account added will be read-only and can’t perform any transactions or swaps, but you can observe the account’s swaps, assets, and funds.&#x20;

To do this, add the public address of the account you’d like to watch and input its name:

![](/files/X21rY3E3VYyzYAZtfzVi)

You can locate your public account address on Pera by selecting the account you want to watch, clicking the three dots in the upper right corner on the proceeding screen, and selecting "Copy Address":

![](/files/5oFMlLYgahPZvdrhk4Y9)

For more information, <https://docs.defly.app/app/overview>

</details>

<details>

<summary><a href="https://www.exodus.com/">Exodus</a></summary>

The complete guide on how to install Exodus! You can download the latest version from [our website](https://www.exodus.io/download/).

* How do I install Exodus?
* Web3 Wallet
* Desktop: Windows, macOS, Linux

### How do I install Exodus? <a href="#install" id="install"></a>

#### Web3 Wallet? <a href="#web3-wallet" id="web3-wallet"></a>

Exodus Web3 Wallet can be installed on Chrome-based browsers such as Google Chrome or Brave. For more information on what browsers are supported, see [our Knowledge Base guide.](https://docs.folks.finance/introduction/get-started/support.exodus.com/article/28-what-operating-systems-does-exodus-support#web3-wallet)

Follow the guide below to install Exodus Web3 Wallet.

To see which networks Exodus Web3 Wallet supports, visit: [Which networks and tokens does Exodus Web3 Wallet support?](https://docs.folks.finance/introduction/get-started/support.exodus.com/article/1888-exodus-browser-extension#crypto)

1 Download and install Exodus Web3 Wallet from our website: [Web3 Wallet Download](https://www.exodus.com/browser-extension/). Click on ***Install for Chrome and Brave***.

<img src="//d33v4339jhl8k0.cloudfront.net/docs/assets/59907929042863033a1bf144/images/62fd958d80fd5a31e7ad32b9/file-Z4jDkF8NIl.png" alt="" data-size="original">

2 The Chrome Web Store will open. Click on ***Add to Chrome*** (if using Chrome) or ***Add to Brave*** (if using Brave).

<img src="//d33v4339jhl8k0.cloudfront.net/docs/assets/59907929042863033a1bf144/images/62fd959d6d67192dc61bbd7b/file-LK8SNWePa3.png" alt="" data-size="original">

3 You might receive a pop-up asking you to confirm. Click ***Add extension***.

<img src="//d33v4339jhl8k0.cloudfront.net/docs/assets/59907929042863033a1bf144/images/62fd95a9829a3853b69279e6/file-jmzf8g1AX9.png" alt="" data-size="original">

4 To pin the Web3 Wallet to your taskbar, a) click the *Extensions* icon in the top right corner, then b) click the pin icon.

<img src="//d33v4339jhl8k0.cloudfront.net/docs/assets/59907929042863033a1bf144/images/62fd95b5829a3853b69279e7/file-6Jev2gNRpu.png" alt="" data-size="original">

5 And that's it! Exodus Web3 Wallet has now been installed and pinned to your browser. You can open it by clicking on the Exodus logo in your taskbar.

<img src="//d33v4339jhl8k0.cloudfront.net/docs/assets/59907929042863033a1bf144/images/62fd95d180fd5a31e7ad32ba/file-OiNS4xA0wy.png" alt="" data-size="original">

Once installed, you'll be able to create a new wallet or import an existing wallet with your 12-word secret recovery phrase.

For more information, check out the following article: [Getting started with Exodus Web3 Wallet](https://docs.folks.finance/introduction/get-started/support.exodus.com/article/1888-exodus-browser-extension).

After installing Exodus Web3 Wallet, be sure to make a backup of your wallet with your 12-word secret recovery phrase, so you will always have access to your wallet. You can see this guide for more details: [How do I always have access to my wallet with my 12-word secret recovery phrase?](https://docs.folks.finance/introduction/get-started/support.exodus.com/article/41-how-do-i-backup-my-exodus-wallet)

### Desktop <a href="#desktop" id="desktop"></a>

#### Windows <a href="#windows" id="windows"></a>

For Windows users, you can click the installer after [downloading](https://www.exodus.com/download/) and it will automatically install the application to your desktop. It should only take a few seconds to install, and you will be all set to get started.

Exodus will only run on 64-bit systems. Make sure to check your operating system is compatible: [What operating systems does Exodus support?](https://support.exodus.io/article/28-what-operating-systems-does-exodus-support)

[**Tutorial video: How do I install Exodus on Windows?**](https://www.loom.com/share/9c1d7ff253ce4d04bcffb89ef847bff3)

After installing Exodus on Windows, be sure to make a backup of your wallet with your 12-word secret recovery phrase, so you always have access to your wallet. Please see the guide below for more details on how to always have access to your wallet with your 12-word secret recovery phrase: [How do I always have access to my wallet with my 12-word secret recovery phrase?](https://docs.folks.finance/introduction/get-started/support.exodus.com/article/41-how-do-i-backup-my-exodus-wallet)

For more information on how to get started with the Exodus wallet go to our starter guide: [How do I get started with Exodus?](https://docs.folks.finance/introduction/get-started/support.exodus.com/article/37-how-do-i-get-started-with-exodus)

#### macOS <a href="#macos" id="macos"></a>

You can click the installer after [downloading](https://www.exodus.com/download/), and you will be prompted to drag the application into the Applications folder. In just a few seconds, your wallet will be installed and ready to run.

[**Tutorial video: How do I install Exodus on Mac?**](https://www.loom.com/share/2a124d153770465688c1a88b1ac8e852)

After installing Exodus on macOS, be sure to make a backup of your wallet with your 12-word secret recovery phrase, so you always have access to your wallet. Please see the guide below for more details on how to always have access to your wallet with your 12-word secret recovery phrase: [How do I always have access to my wallet with my 12-word secret recovery phrase?](https://docs.folks.finance/introduction/get-started/support.exodus.com/article/41-how-do-i-backup-my-exodus-wallet)

For more information on how to get started with the Exodus wallet go to our starter guide: [How do I get started with Exodus?](https://docs.folks.finance/introduction/get-started/support.exodus.com/article/37-how-do-i-get-started-with-exodus)

#### Linux <a href="#linux" id="linux"></a>

**Which file do I download?**

When you [download](https://www.exodus.com/download/) Exodus for Linux you have the option of either installing .deb or .zip installation files.

If you are using a Debian-based Linux distributions can download the .deb file for a better user experience, while non-Debian systems need to proceed with the .zip file. To check if your Linux distribution is Debian-based, you can check [Wikipedia's list of Debian-based distributions](https://en.wikipedia.org/wiki/Category:Debian-based_distributions).

Once you know your current distribution of Linux, proceed with the appropriate installation instructions below.

**Debian-based distributions**

For those on a Debian distribution, [download](https://www.exodus.com/download/) the .deb file and follow the instructions below. The installation process might look different depending on your desktop environment or distribution.

Once downloaded, simply open it to install Exodus; alternatively, right-click the packed file and select *Install*.

Exodus will only run on 64-bit systems. Make sure to check your operating system is compatible: [What operating systems does Exodus support?](https://support.exodus.io/article/28-what-operating-systems-does-exodus-support)

These screenshots are taken on Ubuntu 22.04.

<img src="//d33v4339jhl8k0.cloudfront.net/docs/assets/59907929042863033a1bf144/images/62a11c015732000792522e40/file-aL2nevudKt.png" alt="" data-size="original">

After the installation, Exodus will appear in the app drawer of your desktop environment, and you can launch it from there:&#x20;

If this doesn't work for your distribution, please download the .zip file. For more information on how to install Exodus with the .zip file, jump to: [Non-Debian distributions.](broken://pages/F1LGeHMZiJ7y3ILnjtfv)

<img src="//d33v4339jhl8k0.cloudfront.net/docs/assets/59907929042863033a1bf144/images/6283f4558bf21a2e2b6d4fc3/file-ak64ZF5deQ.png" alt="" data-size="original">

**Non-Debian distributions**

If your Linux distribution is non-Debian, you can [download](https://www.exodus.com/download/) the .zip file and follow the instructions below.

After you've downloaded the .zip file, you'll need to unzip it:

<img src="//d33v4339jhl8k0.cloudfront.net/docs/assets/59907929042863033a1bf144/images/6283f467c01fce37d9b14154/file-tqS6lX5F88.png" alt="" data-size="original">

After unzipping the file, you can place it wherever you like. We recommend just dropping it in your home directory, for example; `/home/satoshi/Exodus-linux-x64`.

Inside the now unzipped folder, you should see a file called `exodus.desktop`, double-clicking this will launch Exodus directly.

**Registering the Exodus Desktop file with your OS**

You can also register the `exodus.desktop` file with your operating system so that you can launch Exodus from `exodus://` protocol links or from your OS application quick-launcher/application search.

First, move the unzipped Exodus folder to a long-term location where it can live, for example, your home folder. Then, in a terminal inside that folder, execute the script `./install-desktop-file.sh`.

For example, if you moved your unzipped folder to `/home/satoshi/Exodus-linux-x64`, you would open a terminal and run these commands:

`cd /home/satoshi/Exodus-linux-x64 ./install-desktop-file.sh`

This script will register the `exodus.desktop` file with your OS, letting your OS know that the Exodus executable is located at `/home/satoshi/Exodus-linux-x64/Exodus`, and allow `exodus://` links clicked in your browser to open the Exodus app.

The `exodus.desktop` file contains a command that launches Exodus from the current directory. Depending on your security settings, you may receive a pop-up asking you whether you trust this file to be launched:

<img src="//d33v4339jhl8k0.cloudfront.net/docs/assets/59907929042863033a1bf144/images/6283f476b2de5178f88848e0/file-hjFXi74fKD.png" alt="" data-size="original">

It's okay not to trust us here, we get it :) You can always verify what the file does by opening it in the text editor and reviewing the contents. All the file does is launch Exodus from the current folder. If you decide not to trust the file or your Linux distribution does not support .desktop files, you can always run Exodus directly from the terminal: `./Exodus`

<img src="//d33v4339jhl8k0.cloudfront.net/docs/assets/59907929042863033a1bf144/images/6283f484b2de5178f88848e2/file-g9mImzEpYD.png" alt="" data-size="original">

If Exodus fails to run from the first try, open your shell app (a.k.a Terminal) and set the correct permissions for the chrome-sandbox file. These are required for Exodus to properly run on certain Linux distributions:

```
chown root chrome-sandbox
sudo chmod 4755 chrome-sandbox
	
```

The latter command requires that you have full administrative access to your OS, so you may be prompted to input your password during the procedure.

**NEVER** run Exodus as root, via *sudo*, or add any command line arguments unless explicitly instructed by Exodus Support. If after reading this article until the end you have questions about using Exodus on Linux, please don't hesitate to reach out to us.

Some newer Linux releases may require `libgconf-2-4` to be installed which can be done by either:

```
sudo apt-get update && sudo apt-get install -y libgconf-2-4
	
```

on Debian/Ubuntu-based distributions, or

```
sudo yum update && sudo yum install libgconf2-4
	
```

for Fedora/RedHat-based ones.

For more information, <https://support.exodus.com/article/37-how-do-i-get-started-with-exodus>.

</details>

{% embed url="<https://www.fireblocks.com/>" %}


# Get ALGO or ASAs

ALGO is Algorand's native currency, so once the wallet is created, the first thing to do is to add some ALGO so that you can pay the blockchain fees. If you do not have Algo, you can use one of the following methods to obtain them:

## Exchanges

<table><thead><tr><th width="258"></th><th width="193"></th><th></th></tr></thead><tbody><tr><td><a href="https://www.binance.com/en">Binance </a></td><td><a href="https://www.bitstamp.net/">Bitstamp </a></td><td><a href="https://www.coinbase.com/">Coinbase</a> </td></tr><tr><td><a href="https://www.huobi.com/en-us/">Huobi</a> </td><td><a href="https://www.okx.com/">Okx</a> </td><td><a href="https://crypto.com/">Crypto.com</a> </td></tr><tr><td><a href="https://www.kucoin.com/">Kucoin</a> </td><td><a href="https://www.algorand.foundation/the-algo">Many more..</a></td><td></td></tr></tbody></table>

Obtained your firsts ALGO, if you like, you can swap them with other tokens called ASAs.

{% hint style="info" %}
**ASAs**\
The Algorand protocol supports the creation of on-chain assets that benefit from the same security, compatibility, speed, and ease of use as ALGO. The official name for these assets on the Algorand blockchain is **Algorand Standard Assets** (ASA). Algorand Standard Assets can represent stablecoins, loyalty points, system credits, and in-game points just to name a few examples. ASAs can also represent single, unique assets like a deed for a house, collectible items, unique parts on a supply chain, etc. There is also optional functionality to place transfer restrictions on an asset that helps support securities, compliance, and certification use cases.

*Learn more about ASAs* [*here*](https://developer.algorand.org/docs/get-details/asa/)*.*
{% endhint %}

The best way to do that is through the[ swap operation integrated into Folks Finance](/functionalities/swap-and...). Otherwise, you can do that through external Decentralized Exchanges:

<table><thead><tr><th width="273"></th><th></th></tr></thead><tbody><tr><td><a href="https://tinyman.org/">Tinyman</a> </td><td><a href="https://www.pact.fi/">Pact</a> </td></tr></tbody></table>

## On-Ramping (Pera)

Use fiat money to purchase ALGO, USDCa, and USDTa instantly with Pera Onramp's 45+ supported payment methods in over 125 countries.&#x20;

{% embed url="<https://youtu.be/ZdTeN7mG_eI>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

* Connect your wallet. Click on it on the top right corner and then click Buy.
* A modal will appear. Choose how much of an asset you want to buy, the nation you're located in and the payment method.
* Select the providers you want based on their price quote. Click the Proceed button. You'll be directed to a payment page on fluidmoney.xyz.
* N.B. You must enable pop-ups both on Folks Finance and fluidmoney.xyz


# Connect wallet to Folks Finance

You have made your wallet and got your firsts ALGO and ASAs. Now, the third step is to **connect** your wallet to Folks Finance.&#x20;

{% embed url="<https://youtu.be/xrI8DdWnJno>" %}

{% content-ref url="/pages/JjTh1NHxXI539eQfD56N" %}
[Deposit](/functionalities/deposit)
{% endcontent-ref %}


# V2, what's new?

#### UI overhaul&#x20;

The UI of Folks Finance has been completely reimagined for V2. All pages are accessible using buttons in the header: Deposit, Loans, Algo Liquid Governance, and Swap. The main dashboard is accessible by clicking the Folks Finance logo in the header, as well.

#### Elimination of fAssets&#x20;

V1 required interaction with fAssets after depositing into the markets. V2 eliminates the need for interacting with fAssets on the front-end, creating a more elegant process for establishing loan positions.

#### DEX aggregator&#x20;

[Folks Router](/functionalities/folks-router) is a DEXs aggregator that allows users to swap tokens across multiple decentralized exchanges (DEXs) on the Algorand blockchain. This means that users can get the best possible price for their swaps, as Folks Router will automatically compare prices across various DEXs. It also supports split routing and multi-swap paths.

#### High-efficiency loans

Folks Finance users will now be able to take loans with higher loan-to-value ratios thanks to high-efficiency loans. Taking a loan using a value-equivalent collateral type, like gALGO/ALGO or USDC/USDT will enable up to 90% LTV.

{% content-ref url="/pages/eyo4Tt8S4r4ydTHDQFeR" %}
[Loan types](/architecture/loan-types)
{% endcontent-ref %}

#### Collateral swap&#x20;

The ability to seamlessly swap collateral will enable powerful strategies for traders on Folks Finance V2. Swap your collateral to USDC and ensure stability, or swap into any of our other supported assets to ride the trend. How you manage your positions is up to you.

#### More supported Assets

V2 supports up to 189 assets. Folks Finance is excited to bring new financial tools to our users. These could include more tokens, liquidity pools, or other investment vehicles.

#### Flash loans&#x20;

Users will be able to call upon the [Folks Finance V2 SDK](/developer/official-sdks) to take flash loans, which enables the use of borrowed capital so long as it is repaid within the same group transaction. Flash loans are a powerful tool in to DeFi, and we’re keen to see how those savvy enough to harness them will apply their potential.

#### Stable rate/Variable rate loans

No longer will users be subject to fluctuations of interest rates while holding loans. The option to lock in a stable rate will be present for users looking for consistency while they maintain their loan position.

#### Repay using collateral

Another V2 upgrade which streamlines the user experience is the ability to repay your borrow using your collateral. You’ll be able to scale out of positions in a simpler manner using this new feature.

#### Multi-collateral/Multi-borrow

V2 enables loans to be taken using multiple assets as collateral together. In addition, the ability to borrow multiple assets in a single loan position will bring greater flexibility to the protocol overall.


# Need help?


# Contact

### Join us on ⤵️

* [Discord](https://discord.gg/folksfinance) <img src="/files/MBqwDTWrxYwXKqZrWgM2" alt="" data-size="line">
* [Twitter](https://twitter.com/folksfinance) <img src="/files/gfTrcmrbfKEsgTTzh4oi" alt="" data-size="line">
* [Medium](https://folksfinance.medium.com/) <img src="/files/BtWdkI7LrTZvgF6ASYL1" alt="" data-size="line">
* ​​[Telegram](https://t.me/FolksfinanceOfficial) <img src="/files/AkCWDEHbWRkLTgWbeKGO" alt="" data-size="line">
* ​[Reddit](https://www.reddit.com/r/FolksFinance/) <img src="/files/v2eD5KPRt4Ac52szEo0Y" alt="" data-size="line">
* [Linkedin](https://www.linkedin.com/company/folksfinance/) ![](/files/AIRXdkw2zabwavHFwYwB)
* [Facebook](https://www.facebook.com/FolksFinance-110987081176361/) <img src="/files/cUi1vGJ5mr2a4y1jHeD4" alt="" data-size="line">


# Glossary

### Address

This is your wallet's public address. It is composed of a bunch of alphanumeric characters and it is derived from your private key.&#x20;

### APR

*Annual Percentage Rate* is the rate of interest applied on an amount per year. APR tells you how much interest you’ll receive at the end of the year. In terms of loans, APR will tell you how much interest accrues to the amount you borrowed over a year.

### APY

*Annual Percentage Yield* is the actual rate of return earned on an investment, considering the compound interest.

### ASA

The Algorand protocol supports the creation of on-chain assets that benefit from the same security, compatibility, speed, and ease of use as ALGO. The official name for these assets on the Algorand blockchain is Algorand Standard Assets (ASA).

Algorand Standard Assets can represent stablecoins, loyalty points, system credits, and in-game points just to name a few examples. ASAs can also represent single, unique assets like a deed for a house, collectible items, unique parts on a supply chain, etc. There is also optional functionality to place transfer restrictions on an asset that helps support securities, compliance, and certification use cases.

*Learn more about ASAs* [*here*](https://developer.algorand.org/docs/get-details/asa/)*.*

### dApp&#x20;

A dApp is a decentralized application whose code runs on a peer-to-peer network like blockchains instead of centralized servers.

### Escrow account

An Escrow Account is an account that will hold the collateral of a user's loan until a withdrawal or a reduction of collateral occurs.&#x20;

### Liquidation

In decentralized lending protocols, users can open a loan without third-party interactions. Users simply need to deposit crypto-assets and use them as collateral to open a loan. Due to market volatility, the value of a borrower's collateral may increase or decrease, and if the ratio between a borrower's collateral and that user's borrowing amount reaches a warning level, the borrower will be liquidated. In the event of liquidation, a user will lose some or all of the collateral.

### Liquidator

The liquidators are typically automated software (bots) that buy the discounted liquidated collateral at the expense of the borrower.

### Opt-in

Before an account can receive a specific asset, it must opt-in to receive it. An opt-in transaction places an asset holding of 0 into the account and increases its minimum balance by 100,000 microAlgos. An opt-in transaction is simply an asset transfer with an amount of 0, both to and from the account opting-in.

## Rekeying

Rekeying is a powerful protocol feature which enables an Algorand account holder to maintain a static public address while dynamically rotating the authoritative private spending key(s). Think of it like changing the locks to your home.

### Transaction ID&#x20;

A transaction ID is a string of letters and numbers that identifies a specific transaction on the blockchain.

### xALGO

xALGO is a liquid staking token on the Algorand blockchain provided by Folks Finance. It represents staked ALGO and allows users to earn Algorand Consensus Rewards while maintaining the liquidity of their assets. By staking ALGO through Folks Finance, users receive xALGO tokens, which accrue value over time as they earn rewards. These tokens can be traded, used as collateral, or borrowed against within the DeFi ecosystem, offering flexibility and continuous yield generation. The value of xALGO increases relative to ALGO as it collects rewards, and it can be redeemed for ALGO at any time.

### xGov&#x20;

xGov (short for Expert Governor) is a selected group of decentralized decision makers who demonstrate their commitment to the Algorand community and possess a deep understanding of the blockchain. xGovs shall be tasked with determining the distribution of certain grant funds (amongst other things) via decentralized proposal generation and voting.


# FAQ

### Why Algorand?

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.&#x20;

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.

### Why is the page not loading correctly?

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](/introduction/need-help/contact).

*Learn more about node types* [*here*](https://developer.algorand.org/docs/run-a-node/setup/types/?query=node\&object_source=false)*.*

### What is an escrow account?

An Escrow Account is an account that will hold the collateral of your loan until a withdrawal operation occurs.&#x20;

### What is the Liquidation Margin?

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. When the liquidation margin is negative, your loan can be liquidated.

### What is an Opt-In operation?

All of the tokens supported by the Folks Finance protocol are ASAs ([Algorand Standard Assets](https://www.algorand.com/technology#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.

### Does the asset opt-in cost money?

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.&#x20;

### What’s the difference between V1 and V2?

{% content-ref url="/pages/csnOeBt6aKUruVQs6bXU" %}
[V2, what's new?](/introduction/v2-whats-new)
{% endcontent-ref %}

### How do I migrate my assets from V1 to V2?

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.

### Why are rewards lower on V1?

Folks Finance rewards programs are being migrated to V2. In order to take advantage of these systems, a transition to V2 is encouraged.

### How are interest rates set?

You can find information about how interest rates are calculated on the [Interest Rate Model ](/architecture/interest-rate-model)page of the docs.

### Is Folks Finance V2 audited?

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](https://github.com/Folks-Finance/audits).&#x20;

### Can Folks Finance access my funds?

No. Folks Finance uses non-custodial smart contracts which ensure that only the wallet which deposited funds can remove them.

### Is there a grace period when my loan becomes undercollateralized?

Due to the nature of DeFi, there is no grace period when your loan becomes undercollateralized. If your [liquidation margin](/architecture/liquidation) reaches zero, a liquidator can liquidate your collateral.

### What happens to my collateral when I get liquidated?

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.

### Does Folks Finance have a token?

The FOLKS token is being planned to release in 2025, but there is no specific date chosen. Be careful of impersonations, and stay tuned to our [social channels](/introduction/need-help/contact) for official information.

### Why is Folks Finance showing a lower ALGO amount than my wallet?

Your displayed ALGO balance is the amount of ALGO in your wallet, subtracted by the [minimum balance requirement](https://developer.algorand.org/docs/get-details/accounts/#minimum-balance) and 1 ALGO for fees.

### Why is the stable rate higher than the variable rate?

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](/architecture/interest-rate-model) of the docs.

### Why do the Liquidation Margin and LTV change with the collateral swap?

The liquidation margin may decrease for a number of reasons:&#x20;

1. The asset you are swapping into has a lower [collateral factor](/architecture/loan-collateral) than the asset you are swapping from.&#x20;
2. The price impact of the swap can result in you receiving less in value than what you sent.&#x20;
3. The slippage excess from the swap is not re-added as collateral but remains in your wallet.


# Fees

### Transaction Fees

All of the transactions made on Folks Finance protocol cost about 0,001 ALGO due to Algorand network fees. Each operation is composed of a group of transactions. Below is a summary table with the total cost of each transaction, expressed in ALGO.&#x20;

Note that all one time extra fees are recoverable (some only through [SDK](/developer/official-sdks) but will be able to from frontend soon).<br>

| Operation          | Fee                                             | One time extra fee        |
| ------------------ | ----------------------------------------------- | ------------------------- |
| Deposit            | 0.004                                           | 0.25 + 0.1 for each asset |
| Withdraw           | 0.006                                           |                           |
| Move To Collateral | 0.002                                           |                           |
| Create Loan        | 0.002                                           | 0.7285                    |
| Add Collateral     | 0.005                                           | 0.1 for each asset        |
| Reduce Collateral  | 0.006-0.020                                     |                           |
| Borrow             | 0.008-0.022                                     |                           |
| Repay              | 0.010-0.015                                     |                           |
| Flash Loan         | 0.1% of the amount borrowed with the flash loan |                           |
| Folks Router       | 0.1% of the output amount                       |                           |

### Minimum Balance Requirement

It is required to keep an extra 0.1 ALGO in your wallet for each opted-in asset for the minimum balance requirement. If you no longer own the asset then you can opt-out later and you will be able to freely spend the 0.1 ALGO again.


# Allowing pop-up

## Apple Safari (macOS) <a href="#apple-safari-macos" id="apple-safari-macos"></a>

Make sure you have opened the [app.folks.finance](https://app.folks.finance/) website before you start.

1. Open Safari menu.
2. Select Preference&#x73;**.**
3. Click the Websites tab.
4. Select Pop-up Windows from the sidebar.
5. Set Folks.Finance permission on **Allow.**

## Brave / Google Chrome (Windows/macOS) <a href="#brave-google-chrome-windows-macos" id="brave-google-chrome-windows-macos"></a>

1. Open app.folks.finance website.
2. Click the lock icon on the left of the address bar.
3. Click on Site setting&#x73;**.**
4. Select Allow from the drop-down menu next to Pop-ups and redirects.

## Mozilla Firefox (Windows/macOS) <a href="#mozilla-firefox-windows-macos" id="mozilla-firefox-windows-macos"></a>

1. Copy the app.folks.finance URL.
2. Open the burger menu (the icon with three horizontal bars) on the upper right side of the browser toolbar.
3. Select Settings.
4. In the left sidebar, click on Privacy & Security.
5. Scroll down the page to the Permissions section.
6. Open Exception&#x73;**...** next to Block pop-up windows.
7. &#x20;Paste the app.folks.finance URL in the input box below Address of web sit&#x65;**.**
8. Click on Allow.
9. Click on Save Changes.

## Microsoft Edge (Windows 10/11) <a href="#microsoft-edge-windows-10-11" id="microsoft-edge-windows-10-11"></a>

1. Copy the app.folks.finance URL.
2. Open the "**..."** menu on the upper right side of the browser toolbar.
3. Click on Settings.
4. Find and select Cookies and Site permissions.
5. Select Pop-ups and redirects.
6. Click on Add next to Allow.
7. Paste the app.folks.finance URL in the input box below Sit&#x65;**.**
8. Click Add.


# V2 Testnet tips

### **Try Folks Finance V2 functionalities by using trial funds and zero risks!**

{% embed url="<https://testnet.folks.finance/>" %}
Testnet
{% endembed %}

#### Once you've [created](/introduction/get-started/create-a-wallet) your wallet, the second step to do is to set it up on Testnet.

{% tabs %}
{% tab title="Pera Wallet" %}
{% embed url="<https://support.perawallet.app/en/article/connecting-to-testnet-developer-mode-1q638cf/>" %}
{% endtab %}

{% tab title="MyALGO wallet" %}
**From the top right drop-down menu, choose TESTNET**\
![](/files/HAFJiRw4GQ9HSnw5MS5S)
{% endtab %}

{% tab title="Defly" %}
{% embed url="<https://www.youtube.com/shorts/vF9sg6iLUgE>" %}
{% endtab %}
{% endtabs %}

### Connect your wallet to Folks Finance

{% embed url="<https://www.youtube.com/watch?v=erlXTD6zdPc>" %}

1. Click on "Connect wallet".
2. Choose one of the available wallets.

### Now you can refill your wallet with Testnet Assets

{% tabs %}
{% tab title="ALGO" %}
{% embed url="<https://www.youtube.com/watch?t=6s&v=I4A2tOJG0A0>" %}

1. Open [Algorand Dispenser](https://bank.testnet.algorand.network/).
2. Click on **"I'm not a robot".**
3. Paste your wallet address into the **target address.**
4. Click **Dispense.**

If you have performed all steps correctly you will receive **10 ALGO** within a few seconds to use on the Testnet.
{% endtab %}

{% tab title="ASAs" %}
{% embed url="<https://www.youtube.com/watch?v=1xAsevIOZRg>" %}

1. Click on "Faucet".
2. Choose one of the available assets.
3. Complete the captcha verification.
4. Click on "Request".
   {% endtab %}
   {% endtabs %}

### Well done! Now you are ready to interact with the Testnet of Folks Finance V2 🚀&#x20;

{% content-ref url="/pages/JjTh1NHxXI539eQfD56N" %}
[Deposit](/functionalities/deposit)
{% endcontent-ref %}


# Deposit

{% embed url="<https://youtu.be/o90LJdrFgD8>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

## Deposit

{% embed url="<https://youtu.be/4IpA1nCd1Lk>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. Find the asset you want to deposit in the Available to Deposit table, on the Deposit page.
2. Click on Deposit. A modal will appear.
3. Type in the amount you want to deposit.
4. Click on Deposit.
5. Sign with your wallet.

{% hint style="info" %}
Deposit Boost allows users to earn increased rewards on their deposits. By receiving 1.25M ALGOs from the Algorand Foundation, Folks Finance enabled higher rewards for USDC and EURS. In the future, more tokens can be incentivized.
{% endhint %}

## Swap and Deposit

{% embed url="<https://youtu.be/Tm82uaFb-Ws>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. Find the asset you want to deposit in the Available to Deposit table, on the Deposit page.
2. \- If the wallet balance of the chosen asset is zero, click Swap and Deposit.\
   \- If the wallet balance of the chosen asset is greater than zero, but you want to deposit more, click Deposit and switch to Swap and Deposit in the Deposit modal.&#x20;
3. Select the asset to swap with.
4. Type in the amount.
5. Click on Swap and Deposit.
6. Sign with your wallet.

## Withdraw

{% embed url="<https://www.youtube.com/watch?v=wjZitraQU2I>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. Find the asset you want to withdraw in the Your Deposit table, on the Deposit page.
2. Click on Withdraw. A modal will appear.
3. Type in the amount you want to withdraw.
4. Click on Withdraw.


# Loan

{% embed url="<https://youtu.be/5oQksLDpuvM>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

## Create a new loan

{% embed url="<https://youtu.be/f1OOMBZdQyk>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. Go to the Loans page. Here in Your loans table, click on + Create new loan. A modal will appear.
2. Type in the name of your loan.
3. Choose a loan type between [General, Stablecoin efficiency, or ALGO efficiency](/architecture/loan-types).
4. Click on Create loan.
5. Sign with your wallet.

{% content-ref url="/pages/Byz05h0ahesKkpOqGYj2" %}
[Collateral](/functionalities/loan/collateral)
{% endcontent-ref %}

{% content-ref url="/pages/bxvOLXMXQA89bwvgO2Iy" %}
[Borrow](/functionalities/loan/borrow)
{% endcontent-ref %}

{% content-ref url="/pages/eyo4Tt8S4r4ydTHDQFeR" %}
[Loan types](/architecture/loan-types)
{% endcontent-ref %}


# Collateral

## Collateralize

{% embed url="<https://youtu.be/GkcInCThfSo>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. Find the asset you want to use as collateral in the Available to Collateralize table, on the Loans page.
2. Click on Collateralize. A modal will appear.
3. Choose the loan you want to deposit in.
4. Type in the amount you want to use.
5. Click Collateralize.
6. Sign with your wallet.

## Swap and Collateralize

{% embed url="<https://youtu.be/wBOVn-JuoDc>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. Find the asset you want to use as collateral in the Available to Collateralize table, on the Loans page.
2. \- If the wallet balance of the chosen asset is zero, click Swap and Collateralize.\
   \- If the wallet balance of the chosen asset is greater than zero, but you want more, click Collateralize and switch to Swap and Collateralize.&#x20;
3. Choose the loan you want to add collateral to.
4. Select the asset to swap with.
5. Click on Swap and Collateralize.
6. Sign with your wallet.

## Add collateral (Loan page)

{% embed url="<https://youtu.be/9SQxko1Hg1Y>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. In the Loans page, Your loan table, click on the Manage button for the loan you want to add collateral to.
2. Once you enter the loan page, click Add next to the token to which you want to add amounts.
3. Type in the amount you want to use.
4. Click Collateralize.
5. Sign with your wallet.

## Swap collateral (Loan page)

{% embed url="<https://youtu.be/RG1b2Rs1RQo>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. In the Loans page, Your loan table, click on the Manage button.
2. Once you enter the loan page, in the table your collateral, click on Swap next to the collateral you want to swap.
3. Select the asset to swap with.
4. Click on Swap collateral.
5. Sign with your wallet.

## Move to Collateral

{% embed url="<https://youtu.be/N6MQ1QCRbN8>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. Click on Move to collateral on the Deposit page, Your Deposit table. A modal will appear.
2. Choose the loan you want to add collateral to.
3. Type in the amount you want to move.
4. Click Move to collateral.
5. Sign with your wallet.

## Reduce Collateral

{% embed url="<https://youtu.be/S0FWHyzcKug>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. Click on Manage on the Loans page, Your Loan table.&#x20;
2. Once you enter the loan page, click Reduce next to the token to which you want to reduce amounts.
3. Type in the amount you want to withdraw.
4. Click Reduce collateral.
5. Sign with your wallet.


# Borrow

## Borrow (Dashboard)

{% embed url="<https://youtu.be/jl7Y6Fj0HJk>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. On the Loans page, Available to Borrow table, click on Borrow. A modal will appear.
2. Choose the loan you want to borrow in.
3. Type in the amount you want to borrow.
4. Choose between stable or variable APY.
5. Click Borrow.
6. Sign with your wallet.

## Borrow (Loan Page)

{% embed url="<https://youtu.be/AwqzANfIlIY>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. In the Loans page, Your loan table, click on Manage.&#x20;
2. Once you are on the loan page, click on Borrow next to the token you want to borrow.
3. Type in the amount you want to borrow.
4. Choose between stable or variable APY.
5. Click Borrow.
6. Sign with your wallet.

## Repay

{% embed url="<https://youtu.be/yS0ozO1Ma7M>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. In the Loans page, Your loan table, click on Manage.&#x20;
2. Once you are on the loan page, click on Repay next to the token you want to repay.
3. Type in the amount you want to repay.
4. Click on Repay.
5. Sign with your wallet.

## Repay using another asset

{% embed url="<https://youtu.be/q3cDiZ-dn-E>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. In the Loans page, Your loan table, click on Manage.&#x20;
2. Once you are on the loan page, click on Repay next to the token you want to repay.
3. Click on Use another asset.
4. Select the asset to repay with.
5. Type in the amount.
6. Click on Repay.
7. Sign with your wallet.

## Repay using collateral

{% embed url="<https://youtu.be/XzrRQVTw3wY>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

{% hint style="info" %}
Please note.

During the [Redeem](broken://pages/b3qQui57buFhEOdEvIC0#redeem) period of ALGO Liquid Governance, repaying an ALGO loan with gALGO will be done by redeeming the gALGO instead of the swapping.
{% endhint %}

1. In the Loans page, Your loan table, click on Manage.&#x20;
2. Once you are on the loan page, click on Repay next to the token you want to repay.
3. Click on Use collateral.
4. Select the asset to repay with.
5. Type in the amount.
6. Click on Repay.
7. Sign with your wallet.


# Swap and...

## Swap

{% embed url="<https://youtu.be/IAK3mtZKi2s>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. In the header, click on Swap. A modal will appear.
2. Select two assets to make the swap with.
3. Type in the amount.
4. Click on Swap.
5. Sign with your wallet.

## Swap and Deposit

{% embed url="<https://youtu.be/Tm82uaFb-Ws>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. Find the asset you want to deposit in the Available to Deposit table, on the Deposit page.
2. \- If the wallet balance of the chosen asset is zero, click Swap and deposit.\
   \- If the wallet balance of the chosen asset is greater than zero, but you want to deposit more, click Deposit and switch to Swap and Deposit in the Deposit modal.&#x20;
3. Select the asset to swap with.
4. Type in the amount.
5. Click on Swap and Deposit.
6. Sign with your wallet.

## Swap and Collateralize

{% embed url="<https://youtu.be/wBOVn-JuoDc>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. Find the asset you want to use as collateral in the Available to Collateralize table, on the Loans page.
2. \- If the wallet balance of the chosen asset is zero, click Swap and Collateralize.\
   \- If the wallet balance of the chosen asset is greater than zero, but you want more, click Collateralize and switch to Swap and Collateralize.&#x20;
3. Choose the loan you want to add collateral to.
4. Select the asset to swap with.
5. Click on Swap and Collateralize.
6. Sign with your wallet.

## Swap collateral (Loan page)

{% embed url="<https://youtu.be/RG1b2Rs1RQo>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. In the Loans page, Your loan table, click on the Manage button.
2. Once you enter the loan page, in the table your collateral, click on Swap next to the collateral you want to swap.
3. Select the asset to swap with.
4. Click on Swap collateral.
5. Sign with your wallet.

## Repay using another asset

{% embed url="<https://youtu.be/q3cDiZ-dn-E>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. In the Loans page, Your loan table, click on Manage.&#x20;
2. Once you are on the loan page, click on Repay next to the token you want to repay.
3. Click on Use another asset.
4. Select the asset to repay with.
5. Type in the amount.
6. Click on Repay.
7. Sign with your wallet.

## Swap and Commit

{% embed url="<https://youtu.be/xnW_Wgdcc9k>" %}
The UI undergoes regular upgrades; what you see in the video may look slightly different than what you see on the app.
{% endembed %}

1. On Your Wallet table, click on Swap and Commit.
2. Select the asset to make the swap with.
3. Type in the amount you want to swap.
4. Click on Swap and Commit.
5. Sign with your wallet.


# xALGO - Liquid Staking

{% content-ref url="/pages/KCnAT4AZVFAXeaHF0Zrg" %}
[How to Migrate from gALGO to xALGO](/functionalities/xalgo-liquid-staking/how-to-migrate-from-galgo-to-xalgo)
{% endcontent-ref %}

Algorand is undergoing a significant shift from its traditional governance rewards system to a new consensus rewards model. This transition marks a strategic evolution in how Algorand incentivizes network participation, aligning with its commitment to decentralization and security.

#### Why the Change?

The shift to consensus rewards is driven by the goal of directly incentivizing participation in the network’s core consensus mechanism, rather than governance alone. While governance rewards were designed to encourage community engagement in decision-making, consensus rewards focus on rewarding those who actively contribute to the security and operation of the Algorand blockchain.

#### Folks Finance's xALGO and the Shift to Consensus Rewards

The transition from governance rewards to consensus rewards in Algorand is directly tied to the evolution of xALGO. As Algorand shifts its focus toward incentivizing consensus participation, xALGO has been adapted to align with this new rewards structure. Previously, xALGO was associated with governance rewards, allowing users to stake their ALGO and earn rewards. With the introduction of consensus rewards, xALGO now represents staked ALGO and the relative consensus rewards.

#### What is xALGO?

Folks Finance's xALGO is the primary liquid staking token on the Algorand blockchain. It represents staked ALGO and allows users to earn Algorand Consensus Rewards while remaining liquid on DeFi. By staking ALGO through Folks Finance, users receive xALGO tokens, which accrue value over time as they earn rewards. These tokens can be traded, used as collateral, or borrowed against within the DeFi ecosystem, offering flexibility and continuous yield generation. The value of xALGO increases relative to ALGO as it collects rewards, and it can be redeemed for ALGO at any time.

### **How Does xALGO Work?**

{% embed url="<https://youtu.be/5ZiCiHiG0QA?si=G6bJvHzkj8bqC-lg>" %}

***

### How to Stake

1. Click on Stake in the top menu.
2. Enter the amount of ALGO you wish to stake.
3. Click on Stake and complete the process by signing with your wallet.

### How to Ultrastake

{% embed url="<https://youtu.be/wDnj5YN-Y1s>" %}

1. Click on Stake in the top menu.
2. Enter the amount of ALGO you wish to stake.
3. Toggle the Ultrastake button to On.
4. Select the leverage level that best suits your preferences.
5. Choose between Variable or Stable APY.
6. Click on Ultrastake and complete the process by signing with your wallet.

### How to Unstake

1. Switch to the Unstake tab.
2. Enter the amount of xALGO you wish to unstake.
3. Click on Unstake and finalize the process by signing with your wallet.

### How to Unstake an Ultrastake Position

1. Navigate to your Ultrastake position.
2. Click on Unstake and complete the process by signing with your wallet.

***

#### **Staking Rewards Fee Policy**

The protocol retains a 10% fee exclusively on staking rewards, with all collected fees directed to the community treasury.

***

**Staking ALGO to Receive xALGO**

Users can stake ALGO by depositing it into Folks Finance’s Liquid Staking system

$$
\text{xALGO}\_{\text{received}} = \text{user\_stake} \times \text{rate} \times (1 - \text{premium})
$$

Where:

* $${user\_stake}$$ is the amount of ALGO the user is willing to stake
* $$\text{rate}$$ is the current exchange rate between ALGO and xALGO&#x20;

$$
\text{rate} = \frac{\text{xALGO circulating}}{\text{total\_active\_stake} + \text{total\_rewards} - \text{total\_unclaimed\_fees}}
$$

* $$\text{premium}$$ is the adjustment factor for immediate minting

{% hint style="info" %}
Premium in xALGO minting compensates for the 320-round delay before newly staked ALGO begins earning rewards. Without it, immediate minters could unfairly benefit from rewards generated by other users’ staked ALGO during this delay. The premium ensures fair distribution of rewards across all participants.
{% endhint %}

**Earning Rewards**

xALGO is designed to continuously increase in value as it accrues Algorand Consensus Rewards. These rewards are compounded into the xALGO token, increasing its value relative to ALGO.

**Using xALGO**

* **Deposit**: Users can deposit xALGO in Folks Finance
* **Collateralization:** xALGO can be used as collateral within the Folks Finance platform, allowing users to borrow against their staked assets.
* **Borrowing:** Users can borrow xALGO&#x20;
* **Ultrastake:** Users can employ strategies to maximize their returns by leveraging xALGO within the lending markets.

**Unstaking xALGO**&#x20;

Users can unstake xALGO to redeem their underlying ALGO at any time.

$$
\text{ALGO}\_{\text{received}} = \frac{\text{user\_unstake}}{\text{rate}}
$$

Where:&#x20;

* $${user\_unstake}$$ is the amount of ALGO the user is willing to unstake
* $$\text{rate}$$ is the current exchange rate between ALGO and xALGO.

**Advantages of xALGO**

• Continuous Yield: xALGO automatically accrues Algorand Consensus Rewards without the need for active management.

• Liquidity: Users can maintain liquidity while staking, allowing them to participate in the DeFi ecosystem.

• Flexibility: xALGO can be used in various strategies, from borrowing to leveraged staking.

***

{% content-ref url="/pages/nodLBc6DXEslLJhYBxM7" %}
[Broken mention](broken://pages/nodLBc6DXEslLJhYBxM7)
{% endcontent-ref %}


# How to Migrate from gALGO to xALGO

<figure><img src="/files/nzRbt3xCGsnFTA8MJkwp" alt=""><figcaption></figcaption></figure>

1. Visit the [Liquid Governance page](https://app.folks.finance/algo-liquid-governance) on Folks Finance.
2. Make sure to check the ‘Migrate to xALGO’ box.
3. Click ‘Stake’ — sign with your wallet.
4. Start collecting Staking Rewards immediately.

### How to migrate a gALGO leverage position into a xALGO Ultrastake

1. Visit the [Liquid Governance page](https://app.folks.finance/algo-liquid-governance) on Folks Finance.
2. Scroll down and look at your leverage postion.
3. Click "Ultrastake" — sign with your wallet.&#x20;
4. Start collecting Staking Rewards immediately.


# Lending Pools

Composing DEX & Lending for Higher Capital Efficiency

**Lending Pools** are an innovative tool made in collaboration with [Tinyman](https://app.tinyman.org/#/swap?asset_in=0\&asset_out=31566704) and [Pact.fi](https://app.pact.fi/). Lending pools allow liquidity providers to accrue yield from Folks Finance's lending pools and liquidity pools on a DEX at the same time by increasing the efficiency of deposited assets.

**Lending Pools are DEX pools comprised of interest-bearing assets.**\
If you use Lending Pools for ALGO-USDC, you will receive:

* The interest from the ALGO deposit on Folks Finance.
* The interest from the USDC deposit on Folks Finance.
* The swap fees from the DEX pool.

This innovation will grant **deeper liquidity**, **greater TVL** and **higher yield.**

### How to Start with Lending Pools?

#### Lending pools on PactFi

{% embed url="<https://www.youtube.com/watch?v=Lo9y-5Ir5Fc>" %}

#### Lending pools on Tinyman

{% embed url="<https://www.youtube.com/watch?v=I7qBX8RUCUo>" %}

1. Go to [app.folks.finance](https://app.folks.finance/deposit) and choose a pair of tokens to deposit in Lending Pools.
2. After you click Deposit, you will be redirected to Pact or Tinyman.
3. Choose the amount for providing liquidity.

If you’re new to Folks Finance,[ start at the Academy](http://academy.folks.finance).


# Ultraswap

Folks Finance users often utilize loan looping as a strategy to increase their market exposure. UltraSwap has made this process much more convenient and efficient. With just a few clicks, users can now achieve their desired outcome. By utilizing [Loans](/functionalities/loan), [Flash Loans](#flash-loans) and [Folks Router](/functionalities/folks-router), users can perform an UltraSwap within a single transaction group, providing a quick and user-friendly experience while maintaining control over their token interactions.

{% embed url="<https://www.youtube.com/watch?v=1B3_dQ47KyU>" %}

### How to Open a Position

1. Click on the "UltraSwap" button to view a list of available tokens
2. Choose the desired action (Up, Down, or Convert) for the token you wish to interact with
3. Type in the quantity of tokens to exchange and the [operation multiplier](#operation-multiplier) (operation multiplier only available for Up and Down)
4. Choose between Stable and Variable APY&#x20;
5. Click on the "Open Up/Down" button and confirm with your wallet
6. Sign with your wallet

The expected outputs of the operation will depend on the token price’s change over time.

### How to Close a Position

1. In the “Your Ultraswap Positions” click on the position you want to close
2. Click on the “Bin” logo
3. Click on Close
4. Sign with your wallet

### Operation Multiplier&#x20;

Operation Multiplier refers to the practice of using Folks Finance's lending-related smart contracts to borrow funds to increase the size of the position. The multiplier allows users to control a more significant position with a relatively smaller amount of their own capital.&#x20;

For example, if a user has a 2x multiplier (2:1), it means that for every $1 of their asset, they control a $2 position. If they have a margin of $1,000, with a 2x multiplier they control a position worth up to $2,000.

### New Loan Types

Two new loan types have been created to support the Down and Up operations. These loan types only allow a single collateral and single borrow to be present in a given loan. In addition, the liquidation bonus will be paid out proportionally according to the formula:

$$
collateral\ received = loan\ collateral \times \left(\frac{borrow\ repaid}{borrow\ balance}\right)
$$

The above formula should ensure that when a loan exceeds its max LTV ratio, the whole loan is effectively wiped out because its LTV ratio is unaffected from any liquidation.

\
The Up Loan Type allows all available tokens to be used as collateral and only USDC to be borrowable. The borrow factor for USDC will be 100%. This means that the maximum LTV ratio is defined as:

$$
Max\ LTV\ Ratio = CF
$$

Where:

* CF  is the collateral factor of the collateralized asset

This Down Loan Type allows only USDC to be used as collateral and all available tokens to be borrowable. The collateral factor for USDC will be 100%. This means that the maximum LTV ratio is defined as:

$$
Max\ LTV\ Ratio = \frac{1}{BF}
$$

Where:

* BF is the borrow factor of the borrowed asset

### Flash Loans

Flash loans are unique loans that must be repaid within the same transaction block. This requires users to possess the necessary funds for repayment before the transaction block is finalized. Flash loans are commonly used for quick token interactions and adjustments.

In the context of UltraSwap, users can utilize a flash loan to temporarily access the desired asset, complete the operations, and then repay the loan using the proceeds. This can be accomplished within a single transaction group.

### Up Parameters

Liquidation bonus defined as:

$$
collateral\ received = loan\ collateral \times \left(\frac{borrow\ repaid}{borrow\ balance}\right)
$$

| Asset | Collateral Factor | Borrow Factor | Collateral Cap ($) | Liquidation Max | Liquidation Fee | Max Multiplier | Max starting Multiplier |
| ----- | ----------------- | ------------- | ------------------ | --------------- | --------------- | -------------- | ----------------------- |
| USDC  | N/A               | 100%          | N/A                | 100%            | N/A             | N/A            | N/A                     |
| ALGO  | 82.5%             | N/A           | 200,000            | N/A             | 10%             | 5.71           | 5                       |
| goBTC | 90%               | N/A           | 50,000             | N/A             | 10%             | 10             | 8                       |
| goETH | 90%               | N/A           | 50,000             | N/A             | 10%             | 10             | 8                       |
| wBTC  | 90%               | N/A           | 50,000             | N/A             | 10%             | 10             | 8                       |
| wETH  | 90%               | N/A           | 50,000             | N/A             | 10%             | 10             | 8                       |

### Down Parameters

Liquidation bonus defined as:

$$
collateral\ received = loan\ collateral \times \left(\frac{borrow\ repaid}{borrow\ balance}\right)
$$

| Asset | <p>Collateral</p><p>Factor</p> | Borrow Factor | Collateral Cap ($) | Liquidation Max | Liquidation Fee | Max Multiplier | Max starting Multiplier |
| ----- | ------------------------------ | ------------- | ------------------ | --------------- | --------------- | -------------- | ----------------------- |
| USDC  | 100%                           | N/A           | 400,000            | N/A             | 10%             | N/A            | N/A                     |
| ALGO  | N/A                            | 121.21%       | N/A                | 100%            | N/A             | 4.71           | 4                       |
| goBTC | N/A                            | 111.11%       | N/A                | 100%            | N/A             | 9              | 7                       |
| goETH | N/A                            | 111.11%       | N/A                | 100%            | N/A             | 9              | 7                       |
| wBTC  | N/A                            | 111.11%       | N/A                | 100%            | N/A             | 9              | 7                       |
| wETH  | N/A                            | 111.11%       | N/A                | 100%            | N/A             | 9              | 7                       |


# Folks Router

{% embed url="<https://folksrouter.io/>" %}

### Introduction

Folks Router is a DEXs aggregator that allows users to swap tokens across multiple decentralized exchanges (DEXs) on the Algorand blockchain. This means that users can get the best possible price for their swaps, as Folks Router will automatically compare prices across various DEXs. It also supports split routing and multi-swap paths.

### How to use Folks Router

To use Folks Router, simply connect your Algorand wallet to the Folks Finance website. Then select the “Swap” item in the navigation menu at the top of the page. Choose which assets you would like to swap, the amount to swap and the maximum slippage. When you are ready, confirm the swap and sign the requested transactions.

The Folks Router is also fully integrated into the Folks Finance dapp. Operations such as: “Swap and Deposit”, “Swap Collateral”, “Repay with Collateral” and “Buy/Sell gALGO” all use the Folks Router to ensure you get the best possible rates.&#x20;

{% hint style="info" %}
**Slippage**&#x20;

There is always a risk of slippage when swapping tokens. Slippage occurs when the price of a token changes between the time that you initiate a swap and the time that the swap is executed. This can happen for a number of reasons, such as market volatility or changes in liquidity.

You can set the tolerance limit you consent to have for your requested swap. If the price change is greater than the limit set, then the transaction will fail and no funds will leave your wallet.
{% endhint %}

### Supported DEXs

Folks Router currently supports the following DEXs on the Algorand blockchain:

* [Tinyman](https://tinyman.org/)
* [Pact](https://www.pact.fi/)
* [Humble](https://www.humble.sh/)

Notably, Folks Router includes [Lending Pools](https://docs.folks.finance/functionalities/lending-pools) in its asset pairs, which offers another layer of liquidity and generates fees for those providing liquidity in Lending Pools.

### How does it work?

When swapping, Folks Router supports split routing up to 4 paths, and 3 swaps per route, with the potential to expand these capabilities further. Folks Router supports both fixed-input and fixed-output swaps, meaning you will always receive exactly what you want.

Transactions are built compactly in Folks Router, which offers two distinct benefits: reduced transaction fees and increased opportunities for composability. These features, especially the latter, pave the way for more progressive and user-friendly products than Folks has ever launched before.

Folks Router is fully integrated into the Folks Finance dApp, which makes it easy for users to swap tokens. Actions such as swapping collateral, swapping borrowed assets, and swapping gALGO will benefit from the improved efficiency of the Folks Router. Assets and pools are also dynamically updated, highlighting the moment’s popular trading pairs and tokens.

### Fees

Folks Router charges a 0.1% flat fee on the swap output amount, which should be significantly lower than the amount of savings it brings.

**Benefits for $FOLKS holders:**

Folks Router V2 allows users to get a discount on the swap fees depending on how many FOLKS they have:

| Tiers                | Discounts |
| -------------------- | --------- |
| 0 ≤ FOLKS < 15       | 0%        |
| 15 ≤ FOLKS < 325     | 10%       |
| 325 ≤ FOLKS < 1000   | 20%       |
| 1000 ≤ FOLKS < 5000  | 30%       |
| 5000 ≤ FOLKS < 12500 | 40%       |
| FOLKS ≥ 12500        | 50%       |


# Parameters

#### [Pools](/architecture/pool-dynamics) are categorized based on similar risk characteristics:

* Stable
* ALGO
* Medium Risk
* High Risk

| <p><br></p>                                           | ALGO       | gALGO | xALGO     | tALGO     | USDC       | goBTC     | goETH     | WBTC      | WETH      | WAVAX  | WSOL   | wLINK  | GOLD        | SILVER      |
| ----------------------------------------------------- | ---------- | ----- | --------- | --------- | ---------- | --------- | --------- | --------- | --------- | ------ | ------ | ------ | ----------- | ----------- |
| Category                                              | ALGO       | ALGO  | ALGO      | ALGO      | Stable     | Medium    | Medium    | Medium    | Medium    | Medium | Medium | Medium | Commodities | Commodities |
| Variable Base Rate (RV0)                              | 0%         | 0%    | 0%        | 1%        | 1.75%      | 0%        | 0%        | 0%        | 0%        | 0%     | 0%     | 0%     | 1.75%       | 1.75%       |
| Variable Slope 1 Rate (RV1)                           | 4.5%       | 0%    | 6.5%      | 5.5%      | 5%         | 7.5%      | 7.5%      | 4%        | 2.25%     | 7.5%   | 7.5%   | 7.5%   | 5%          | 5%          |
| Variable Slope 2 Rate (RV2)                           | 50%        | 0%    | 100%      | 100%      | 100%       | 200%      | 200%      | 100%      | 100%      | 200%   | 200%   | 200%   | 100%        | 100%        |
| Stable Additional Base Rate (RS0)                     | 2.25%      | 0%    | 2.25%     | 2.25%     | 2%         | 1%        | 1%        | 3%        | 3%        | 1%     | 1%     | 1%     | 2%          | 2%          |
| Stable Slope 1 Rate (RS1)                             | 2.25%      | 0%    | 2.25%     | 2.25%     | 2%         | 1%        | 1%        | 5%        | 2.25%     | 1%     | 1%     | 1%     | 2%          | 2%          |
| Stable Slope 2 Rate (RS2)                             | 200%       | 0%    | 100%      | 100%      | 100%       | 200%      | 200%      | 100%      | 100%      | 200%   | 200%   | 200%   | 100%        | 100%        |
| Stable Excess Rate (RS3)                              | 30%        | 0%    | 35%       | 35%       | 25%        | 35%       | 35%       | 25%       | 25%       | 35%    | 35%    | 35%    | 25%         | 25%         |
| Optimal Utilisation Ratio (Uopt)                      | 90%        | 70%   | 55%       | 55%       | 85%        | 55%       | 55%       | 45%       | 80%       | 55%    | 55%    | 55%    | 60%         | 60%         |
| Optimal Stable to Total Debt Ratio (Oratio)           | 20%        | 20%   | 20%       | 20%       | 20%        | 20%       | 20%       | 20%       | 20%       | 20%    | 20%    | 20%    | 20%         | 20%         |
| Rebalance Up Utilisation Ratio (URU)                  | 90%        | 90%   | 90%       | 90%       | 95%        | 90%       | 90%       | 95%       | 95%       | 90%    | 90%    | 90%    | 90%         | 90%         |
| Rebalance Up Deposit Interest Rate Percentage (DIRRU) | 50%        | 50%   | 40%       | 40%       | 40%        | 55%       | 55%       | 5%        | 5%        | 55%    | 55%    | 55%    | 55%         | 55%         |
| Rebalance Down Delta (RD)                             | 20%        | 20%   | 20%       | 20%       | 20%        | 20%       | 20%       | 20%       | 20%       | 20%    | 20%    | 20%    | 20%         | 20%         |
| Retention Rate (RR)                                   | 20%        | 10%   | 10%       | 20%       | 10%        | 10%       | 10%       | 15%       | 15%       | 10%    | 10%    | 10%    | 10%         | 10%         |
| Flash Loan Fee                                        | 0.1%       | N/A   | 0.1%      | 0.1%      | 0.1%       | 0.1%      | 0.1%      | 0.1%      | 0.1%      | 0.1%   | 0.1%   | 0.1%   | 0.1%        | 0.1%        |
| Borrow Cap ($)                                        | 70,000,000 | 0     | 5,000,000 | 5,000,000 | 15,000,000 | 1,000,000 | 1,000,000 | 3,000,000 | 3,000,000 | 0      | 0      | 0      | 200,000     | 180,000     |
| Single Stable Borrow Percentage Cap                   | 4%         | 0%    | 4%        | 4%        | 6.2%       | 5.5%      | 5.5%      | 5%        | 5%        | 5.5%   | 5.5%   | 5.5%   | 6.2%        | 6.2%        |

### Isolated Pools

| <p><br></p>                                           | ALGO      | USDC      | TINY   | FOLKS  |
| ----------------------------------------------------- | --------- | --------- | ------ | ------ |
| Variable Base Rate (RV0)                              | 0%        | 1%        | 1%     | 1%     |
| Variable Slope 1 Rate (RV1)                           | 10%       | 15%       | 20%    | 9%     |
| Variable Slope 2 Rate (RV2)                           | 200%      | 400%      | 300%   | 200%   |
| Stable Additional Base Rate (RS0)                     | 1%        | 1%        | 1%     | 1%     |
| Stable Slope 1 Rate (RS1)                             | 1%        | 1%        | 1%     | 1%     |
| Stable Slope 2 Rate (RS2)                             | 200%      | 200%      | 200%   | 200%   |
| Stable Excess Rate (RS3)                              | 40%       | 40%       | 40%    | 40%    |
| Optimal Utilisation Ratio (Uopt)                      | 72.5%     | 85%       | 30%    | 50%    |
| Optimal Stable to Total Debt Ratio (Oratio)           | 10%       | 10%       | 10%    | 10%    |
| Rebalance Up Utilisation Ratio (URU)                  | 85%       | 85%       | 85%    | 85%    |
| Rebalance Up Deposit Interest Rate Percentage (DIRRU) | 75%       | 75%       | 75%    | 75%    |
| Rebalance Down Delta (RD)                             | 20%       | 20%       | 20%    | 20%    |
| Retention Rate (RR)                                   | 30%       | 25%       | 30%    | 20%    |
| Flash Loan Fee                                        | 0.1%      | 0.1%      | 0.1%   | 0.1%   |
| Borrow Cap ($)                                        | 1,000,000 | 1,000,000 | 60,000 | 50,000 |
| Single Stable Borrow Percentage Cap                   | 2%        | 2%        | 1%     | 1%     |

### Loans are categorized based on their types:

* General
* Stablecoin Efficiency
* ALGO Efficiency
* Up/Down

#### General

| <p><br></p>        | ALGO       | gALGO      | xALGO      | tALGO     | USDC        | goBTC | goETH | WBTC      | WETH      | WAVAX | WSOL | wLINK | GOLD    | SILVER  |
| ------------------ | ---------- | ---------- | ---------- | --------- | ----------- | ----- | ----- | --------- | --------- | ----- | ---- | ----- | ------- | ------- |
| Collateral Factor  | 65%        | 65%        | 65%        | 60%       | 80%         | 70%   | 70%   | 65%       | 75%       | 60%   | 60%  | 60%   | 60%     | 60%     |
| Borrow Factor      | 100%       | N/A        | 100%       | 100%      | 100%        | 100%  | 100%  | 100%      | 100%      | 115%  | 120% | 120%  | 100%    | 100%    |
| Collateral Cap ($) | 50,000,000 | 35,000,000 | 15,000,000 | 5,000,000 | 100,000,000 | 0     | 0     | 5,000,000 | 5,000,000 | 0     | 0    | 0     | 350,000 | 275,000 |
| Liquidation Max    | 50%        | N/A        | 50%        | 50%       | 50%         | 50%   | 50%   | 50%       | 50%       | 50%   | 50%  | 50%   | 50%     | 50%     |
| Liquidation Bonus  | 8%         | 10%        | 10%        | 10%       | 6%          | 8%    | 8%    | 7.5%      | 5%        | 10%   | 10%  | 10%   | 8%      | 8%      |
| Liquidation Fee    | 10%        | 10%        | 10%        | 10%       | 10%         | 10%   | 10%   | 10%       | 10%       | 10%   | 10%  | 10%   | 10%     | 10%     |

#### Stablecoin Efficiency

| <p><br></p>        | USDC        | USDt | EURS | Gard |
| ------------------ | ----------- | ---- | ---- | ---- |
| Collateral Factor  | 90%         | 40%  | 40%  | 75%  |
| Borrow Factor      | 100%        | 150% | 120% | 500% |
| Collateral Cap ($) | 100,000,000 | 0    | 0    | 0    |
| Liquidation Max    | 50%         | 50%  | 50%  | 50%  |
| Liquidation Bonus  | 4%          | 5%   | 6%   | 6%   |
| Liquidation Fee    | 10%         | 10%  | 10%  | 10%  |

#### ALGO Efficiency

| <p><br></p>        | ALGO       | gALGO      | xALGO      | tALGO      |
| ------------------ | ---------- | ---------- | ---------- | ---------- |
| Collateral Factor  | 85%        | 82.5%      | 85%        | 80%        |
| Borrow Factor      | 100%       | N/A        | 100%       | 100%       |
| Collateral Cap ($) | 50,000,000 | 75,000,000 | 45,000,000 | 10,000,000 |
| Liquidation Max    | 50%        | N/A        | 50%        | 50%        |
| Liquidation Bonus  | 6%         | 8%         | 8%         | 8%         |
| Liquidation Fee    | 10%        | 10%        | 10%        | 10%        |

#### Algorand Ecosystem

| <p><br></p>        | ALGO    | USDC    | TINY    | FOLKS  |
| ------------------ | ------- | ------- | ------- | ------ |
| Collateral Factor  | 60%     | 75%     | 40%     | 40%    |
| Borrow Factor      | 100%    | 100%    | 110%    | 150%   |
| Collateral Cap ($) | 300,000 | 250,000 | 120,000 | 75,000 |
| Liquidation Max    | 50%     | 50%     | 50%     | 50%    |
| Liquidation Bonus  | 15%     | 15%     | 20%     | 20%    |
| Liquidation Fee    | 15%     | 15%     | 15%     | 15%    |

#### Up

Liquidation bonus defined as

$$
collateral\ received = loan\ collateral \times \left(\frac{borrow\ repaid}{borrow\ balance}\right)
$$

| Asset | Collateral Factor | Borrow Factor | Collateral Cap ($) | Liquidation Max | Liquidation Fee | Max Multiplier | Max starting Multiplier |
| ----- | ----------------- | ------------- | ------------------ | --------------- | --------------- | -------------- | ----------------------- |
| USDC  | N/A               | 100%          | N/A                | 100%            | N/A             | N/A            | N/A                     |
| ALGO  | 82.5%             | N/A           | 200,000            | N/A             | 10%             | 5.71           | 5                       |
| goBTC | 90%               | N/A           | 50,000             | N/A             | 10%             | 10             | 8                       |
| goETH | 90%               | N/A           | 50,000             | N/A             | 10%             | 10             | 8                       |

#### Down&#x20;

Liquidation bonus defined as:

$$
collateral\ received = loan\ collateral \times \left(\frac{borrow\ repaid}{borrow\ balance}\right)
$$

| Asset | <p>Collateral</p><p>Factor</p> | Borrow Factor | Collateral Cap ($) | Liquidation Max | Liquidation Fee | Max Multiplier | Max starting Multiplier |
| ----- | ------------------------------ | ------------- | ------------------ | --------------- | --------------- | -------------- | ----------------------- |
| USDC  | 100%                           | N/A           | 400,000            | N/A             | 10%             | N/A            | N/A                     |
| ALGO  | N/A                            | 121.21%       | N/A                | 100%            | N/A             | 4.71           | 4                       |
| goBTC | N/A                            | 111.11%       | N/A                | 100%            | N/A             | 9              | 7                       |
| goETH | N/A                            | 111.11%       | N/A                | 100%            | N/A             | 9              | 7                       |


# Pool dynamics

A pool is a smart contract that collects users’ deposits and facilitates users’ borrowings for a given asset.

### Utilization ratio

Each asset available on Folks Finance has a specific liquidity pool where users can deposit and borrow the asset contained.

The pool's Utilisation Ratio $$U$$, is defined as the ratio between the total debt and the total liquidity:&#x20;

$$
U= \dfrac{TotalDebt}{TotalDeposits}
$$

Where:

$$
Total Debt=Total Variable Borrow Amount+Total Stable Borrow Amount
$$

The protocol leverages $$U$$to maintain the pool balance among all deposits and borrows. Generally, if $$U$$carries a high value, the protocol will exhibit a low borrowing capacity, as well as a low redeem capacity. Therefore, the borrow interest rate, and consequently, the deposit interest rate both increase to disincentivize new loans and incentivize new deposits. So, when $$U$$tends to 1, the available capital becomes scarce, resulting in a possible problematic situation of unavailable funds for depositor’s withdrawal requests.

On the contrary, if $$U$$moves lower, the protocol, on that specific pool, will offer lower returns on deposited capital, so it must incentivize new loans. Therefore, the borrow interest rate and consequently the deposit interest rate will both decrease to incentivize new borrows and disincentivize further deposits.

### Stable to total debt ratio

To maintain a healthy ratio of stable borrows to total borrows, the protocol introduces a new variable $$Ratio$$​ to monitor the weight of the stable borrows compared to the $$TotalDebt$$​ .

$$
ratio= \frac{SBA}{TotalDebt}
$$

When $$Ratio$$​ carries a high value, the protocol will charge an excess borrow interest rate for new stable borrows to disincentivize them.


# Interest rate model

There are a number of interest rates used to determine the interest paid on borrowings and interest received on deposits. There are also interest indexes which are used to track the accrued interest.

### Borrow interests rates

To differentiate the variable parameters from the stable ones, we are going to use the subscript $$s$$​ for stable and $$v$$​ for variable.\
The variable borrow interest rate $$i\_{vb\_t}$$ and stable borrow interest rates $$i\_{sb\_t}$$ are calculated based on the optimal utilisation ratio $$U\_{opt}$$ and optimal stable to total debt ratio $$0\_{ratio}$$​ set by the protocol.

If $$U\_t < U\_{Opt}$$

$$
i\_{vb\_{t}}=R\_{v0}+ \frac{U\_t}{U\_{Opt}}\*R\_{v1}
$$

If $$U\_t \geqslant	 U\_{opt}$$

$$
i\_{vb\_t}=R\_{v0}+R\_{v1}+\frac{U\_t-U\_{opt}}{1-U\_{opt}}\* R\_{v2}
$$

If $$U\_t \leqslant U\_{opt}$$

$$
i\_{sb\_t}=(R\_{v1}+R\_{s0})+\frac{U\_t}{U\_{Opt}}\*R\_{s1 }
$$

If $$U\_t > U\_{opt}$$

$$
i\_{sb\_t}=(R\_{v1}+R\_{s0})+R\_{s1}+ \frac{U\_t- U\_{Opt}}{1 -U\_{Opt}}\*R\_{s2}
$$

If $$Ratio > 0\_{ratio}$$, an excess is added to the stable borrow interest rate:

$$
i\_{sb\_t}+=R\_{s3}\*\frac{ratio-0\_{ratio}}{1-0\_{ratio}}
$$

The overall borrow interest rate $$i\_{b\_t}$$ factors in all variable and stable rate borrows and is calculated by taking the weighted average of the total variable and stable borrowed amounts and their respective interest rates.

$$
i\_{b\_t}=\frac{TotalVariableBorrowAmount*i\_{vb\_t}+\sum{B\_i*i\_{sb\_i}}}{TotalDebt}
$$

Where:

* $$i\_{vb\_t}$$is the variable borrow amount,
* $$B\_i$$ is the stable borrow amount,
* $$i\_{sb\_i}$$is the stable borrow rate,
* the subscript $$i$$ represents each stable borrow taken on the protocol.

### Deposit interests rates

The deposit interest rate $$i\_{d\_t}$$ is directly dependent on the overall borrow interest rate $$i\_{b\_t}$$. The borrow interest is divided between the depositors, excluding what is retained by the protocol.

$$
i\_{d\_t}= U\_t*i\_{b\_t}*(1-RR)
$$

Where:

* $$RR$$ is the retention rate i.e. the interest kept by the protocol as revenue.


# Rebalancing

Although a user locks in a borrow interest rate when stable borrowing, under certain conditions, it may be necessary to rebalance their borrow interest rate. Rebalancing means that the user’s stable borrow interest rate is updated to the pool’s current stable interest rate $$i\_{sb\_t}$$

To rebalance the stable rate down, the user’s loan stable rate $$i\_{sb\_{old}}$$ needs to be greater than the current stable rate $$i\_{sb\_t}$$ plus a delta, for instance, ∆=20%.

$$i\_{sb\_{old}}$$≥ $$i\_{sb\_t}$$\*(1+∆)

To rebalance the stable rate up, two conditions have to be met at the same time. The first requires the utilization ratio to be greater than or equal to a given threshold, for instance, $$U\_{RU}=95%$$%. The second requires the deposit interest rate to be less than or equal to a given percentage of the max variable interest rate, for instance, $$DIR\_{RU}=25$$%.&#x20;

$$
U\_t \geqslant U\_{RU}
$$

$$
i\_{d\_t} \leqslant	 DIR\_{RU}(R\_{v0}+R\_{v1}+R\_{v2})
$$


# Loan collateral

For safety reasons, the total amount that can be borrowed has to be less than the value of the collateral, in case of negative fluctuations in the collateral value and to guarantee the interest payment.

The **collateral factor** $$CF$$ represents how much a user can borrow against the collateral supplied to the protocol, in percent terms. For example, a more stable asset such as USDC may have $$CF=80%$$% (for $10 supplied, up to $8 of value can be borrowed against it) whereas ALGO may have $$CF=60%$$%.&#x20;

Consider a user who deposits multiple assets and uses them as collateral for a loan. The borrowable amount $$BA\_t$$ at time $$t$$ for a given loan’s collateral balance is:

$$
BA\_t=\sum\_{i=ASSET}^{collateral}A\_{t\_i}*P\_i*CF\_i
$$

Where:

* $$A\_{t\_i}$$ denotes the current user collateral balance if they were to withdraw the Asset.
* $$P\_i$$ is the price of the collateral asset​.
* $$CF\_i$$ is the collateral factor.
* the subscript $$i$$ represents each collateral of the loan.

Since the collateral is composed of different assets, the maximum borrowable amount of each collateralized token must be computed and summed together.


# Loan borrow

After a user has locked up their collateral, they can borrow against it. The amount the user has borrowed of a given asset is defined as $$B\_t$$​ whereas the borrow balance of a given asset $$BB\_t$$​ is defined as the amount borrowed plus accrued interest.

The borrow factor $$BF$$​ represents the effective borrowed amount given a borrow, in percent terms. For example, a more volatile asset may have $$BF=110$$​% (for $10 borrowed, it is as if $11 has been effectively borrowed) whereas a less volatile asset may have $$BF=100$$​%.

Consider a user who borrows multiple assets. The total borrowed amount $$TB\_t$$ at time t for a given loan’s borrows is:

$$
TB\_t=\sum\_{i=ASSET,V/S}^{borrowed}BB\_{t\_i}*P\_i*BF\_i
$$

Where:

* $$BB\_t$$ denotes the current user borrow balance of a borrow,
* $$P\_i$$ is the price of the borrowed asset,
* $$BF\_i$$ is the borrow factor,
* the subscript $$i$$ represents each borrow of the loan where a borrow is a unique pairing of asset and variable/stable rate.

The total borrowed $$TB\_t$$ must not exceed the borrowable amount $$BA\_t$$, otherwise the loan can be liquidated by a third party:

$$
TB\_t \leqslant BA\_t
$$

If a borrow or reduce collateral operation would lead to the above condition being violated then it will be rejected by the protocol.


# Liquidation

When the total borrowed $$TB\_t$$ exceeds the borrowable amount $$BA\_t$$, the loan can be liquidated by a third party:

$$
TB\_t>BA\_t
$$

When a third party liquidates a loan, they select a single borrow to repay and a single collateral to seize. The maximum amount $$C$$, they can liquidate is given as a percentage $$liquidation.max$$ (e.g. 50%) of the borrow balance $$BB\_t$$​:

$$
C\leqslant	BB\_t\*liquidation.max
$$

To incentivise third parties to liquidate other users’ under-collateralized loans, a liquidation bonus $$liq.bonus$$ is earned. If there is insufficient balance of the chosen collateral, then at most the full collateral balance will be seized.

A portion of the liquidation bonus is kept by the protocol as revenue, as determined by the liquidation fee $$liq.fees$$, Any remaining collateral that is not retained by the protocol, will be earned by the liquidator.


# Loan types

There will be multiple types of loans which include different pools and parameters.&#x20;

* <mark style="color:blue;">**General loan**</mark> type which will include all the pools.&#x20;
* <mark style="color:purple;">**Stablecoin efficiency loan**</mark> type which will only include stablecoins.
* <mark style="color:green;">**ALGO efficiency loan**</mark> type which will only include Algo and gALGO. In ALGO efficiency type which will only include Algo and xALGO.
* <mark style="color:$warning;">**Algorand Ecosystem loan**</mark> type which will only include Algorand ecosystem assets.

In the general loan type, USDC has a collateral factor of 80%, whereas in the stablecoin efficiency loan type, USDC has a collateral factor of 90%. The reason this can be done is because the stablecoin efficiency loan type is limited in the different assets that can be borrowed. Since all the other assets are stablecoins as well, the protocol can offer a higher LTV ratio without compromising on safety.


# Flash loan

Flash loans are uncollateralized loans without borrowing limits in which a user borrows funds and returns them in the same group transaction. This feature is primarily useful for developers that want to do arbitrage or liquidations.

The implementation of the flash loan works as follows:

* When requesting a flash loan, you must specify the index in the transaction group of the repayment transaction (must be after).
* The repayment transaction must be coupled with an application call signaling the end of the flash loan.
* The repayment amount must be equal to the flash loan amount plus the flash loan fee.

This innovative design allows flexible flash loans where one can request multiple flash loans from different pools concurrently.&#x20;

Developers can find more information about how to use flash loans by visiting our [SDK](/developer/official-sdks).


# Security


# Bug bounty

### Overview

Folks Finance considers the security of its users as its highest priority. Alongside audits successfully completed with [Trail of Bits](https://www.trailofbits.com/), [Certik](https://www.certik.com/), [Runtime Verification](https://runtimeverification.com/), [Coinspect](https://www.coinspect.com/), and [Vantage Point](https://www.vantagepoint.sg/), the bug bounty program is a fundamental addition.

Therefore,  Folks Finance launches a **$100,000** **Bug Bounty program** on [Immunefi](https://immunefi.com/bounty/folksfinance/) to increase the protocol's robustness.

### Rewards by Threat Level

> Rewards are distributed according to the impact of the vulnerability based on the [Immunefi Vulnerability Severity Classification System V2.2](https://immunefi.com/immunefi-vulnerability-severity-classification-system-v2-2/). This is a simplified 5-level scale, with separate scales for websites/apps, smart contracts, and blockchains/DLTs, focusing on the impact of the vulnerability reported.
>
> Smart Contract bug reports require a PoC and a suggestion for a fix to be eligible for a reward. Explanations and statements are not accepted as PoC and code is required.
>
> High and Critical smart contract vulnerabilities are capped at 10% of economic damage, primarily taking into consideration funds at risk, but also PR and branding aspects, at the discretion of the team. However, there is a minimum reward of **USD 25 000** for Critical and **USD 5 000** for High.
>
> All vulnerabilities marked in the following Github repository [https://github.com/Folks-Finance/audits](https://github.com/Folks-Finance/audits?utm_source=immunefi) are ineligible for a reward
>
> **KYC** shall be completed for bug bounty hunters submitting a vulnerability report and requesting a reward for Critical and High Smart Contracts vulnerabilities. The basic information needed is full name, residential address, and passport details (DOB, issuing country and passport number). Based on the basic information submitted, Folks Finance team may request further information at its sole discretion for compliance with applicable Laws.
>
> Additionally, all levels of bug bounty hunters submitting a vulnerability report and requesting a reward need to submit certification that (i) they are not acting, directly or indirectly, for or on behalf of any person, group entity, or nation named by any Executive Order or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or other banned or blocked person, entity, nation, or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control; and (ii) they are not engaging in, instigating or facilitating this transaction, directly or indirectly, on behalf of any such person, group, entity, or nation. They also need to submit an attestation that all information provided is true, correct, up-to-date and not misleading. The collection of this information will be done by the Folks Finance team.
>
> Payouts are handled by the **Folks Finance** team directly and are denominated in USD. However, payouts are done in **USDCa.**

For more information visit the dedicated page on [Immunefi.](https://immunefi.com/bounty/folksfinance/)


# Audits

Folks Finance maintains the highest standards of security and we have hired several professional organizations for ongoing audits of the protocol source code. Click the following link to have a look at all the reports [https://github.com/Folks-Finance/audits.](https://github.com/Folks-Finance/audits)

|        Auditor       |     Date     |          Description          |
| :------------------: | :----------: | :---------------------------: |
|        Adevar        |    Oct 25    |     Algorand Wormhole NTT     |
|       Coinspect      |    Aug 24    |      ALGO Liquid Staking      |
|     Vantage Point    |    June 23   | Cross-Chain Liquid Governance |
|     Vantage Point    |   March 23   |   ALGO Liquid Governance V3   |
|     Trail of Bits    |     Q4 22    |               V2              |
|        Certik        |     Q4 22    |          V2 fStaking          |
|     Vantage Point    |     Q4 22    |               V2              |
|     Vantage Point    | September 22 |   ALGO Liquid Governance V2   |
|     Vantage Point    |    June 22   |     ALGO Liquid Govenernce    |
|     Vantage Point    |    May 22    |            LP Token           |
|       Coinspect      |   March 22   |               V1              |
|     Vantage Point    |  February 22 |               V1              |
| Runtime Verification |  January 22  |               V1              |


# Contracts

| Pool manager App     | 971350278  |
| -------------------- | ---------- |
| Deposit App          | 971353536  |
| Deposits Staking App | 1093729103 |

### Pools

| Pool       | App Id     | Asset Id   | F Asset Id | Fr Asset Id | App Address                                                |
| ---------- | ---------- | ---------- | ---------- | ----------- | ---------------------------------------------------------- |
| ALGO       | 971368268  | -          | 971381860  | 971381861   | 2ZPNLKXWCOUJ2ONYWZEIWOUYRXL36VCIBGJ4ZJ2AAGET5SIRTHKSNFDJJ4 |
| gALGO      | 971370097  | 793124631  | 971383839  | 971383840   | YVIEGXMJYLVJPVHDU4W6VPKRLVTNR66FLFV54AGJ3KXTAW4FIDJOYUMCXM |
| xALGO      | 2611131944 | 1134696561 | 2611138444 | 2611138445  | YO4ZOK3AEX4YDMOBIYLQUYHO75YPCIOD24PR6KIAVHUW5TZ4OCPSXV6BQE |
| tALGO      | 3073474613 | 2537013734 | 3073480070 | 3073480071  | DNENHJOFOPOCKW3H3VJXXCPCXYDOW5HMWCHOGVPLY7JQFLGH5KSE7IXVDI |
| USDC       | 971372237  | 31566704   | 971384592  | 971384593   | MIHR7TQMMH2J6Q7PFQQEP7AAPVWPGNMPDKI2WDYDTM5P3RNKPD6X4UXG6E |
| USDt       | 971372700  | 312769     | 971385312  | 971385313   | HONE5UB5XL2AKARPJ2FBJMEQ3KD2JRNZQ4MTVXWIWTIC6JDNE6QW2TXVKU |
| EURS       | 1247053569 | 227855942  | 1247054501 | 1247054502  | P4B56R5KSYUL6KG5KY5LJQHRWYNQIGVCUM2AVUVERCOGDTCW77QHY7ALWU |
| Gard       | 1060585819 | 684649988  | 1060587336 | 1060587337  | RDOPB7VY2JLIQRZGZFLZXH2ZL4BJMYXNVH5DCKGQOZ3PDISHEWD4YHFIUY |
| goBTC      | 971373361  | 386192725  | 971386173  | 971386174   | TO56M4DLPYEHBWGFOTG55EE7CNQCJ7RYZECTWY4G7XG6LGHGPXCV4CI7MM |
| goETH      | 971373611  | 386195940  | 971387073  | 971387074   | 3DSRBNSMEK7RR7M7SWRIK5QWGITNM7ZFUJOPPGWM3NPOPO4EQRHRSUXHL4 |
| WBTC (old) | 1067289273 | 1058926737 | 1067295154 | 1067295155  | BV3EU3GIX26XJBF6AX5OC2HJJ5F2OJNQC7M3Y6DGQKPVURPRCHXBEE2OJM |
| WETH (old) | 1067289481 | 887406851  | 1067295558 | 1067295559  | EHC6W75UHDUB5AHFIKMRDV7LEF77GCMONME5QLNRJWOJB7NGPYZBTT556Q |
| WBTC       | 3514794123 | 3495558025 | 3514808410 | 3514808411  | VAXIU6QCBZ6OP7D7OPDRSSVKEY7G3QOEBHKKSWCRNHRM6LTLL6Y37KGUOM |
| WETH       | 3514795114 | 3495722210 | 3514808788 | 3514808789  | ZOLYUQQM6KKR4UJH3CJDIOH2IMMKF5AMU36WMFBBHLIUTZ3LGUUG25DWTY |
| WAVAX      | 1166977433 | 893309613  | 1166979636 | 1166979637  | 7A5PQOCMKDSUV63TUTOX3BMSJK44HH3UCT3YATBF33J6O4IRE7NLEWZ6AI |
| WSOL       | 1166980669 | 887648583  | 1166980820 | 1166980821  | XYW235QHOM46UQN4XIL5CRUZLCYVUYHIOJN77D6ELREPLORTRXM2ZSBKUI |
| WLINK      | 1216434571 | 1200094857 | 1216437148 | 1216437149  | S5OOT4RBI3ICPLZFPDTJGLWOJPK3CSX4SRCRQ7FUU3RAY5DVNUXJ3MH7NE |
| GOLD       | 1258515734 | 246516580  | 1258524377 | 1258524378  | FXSTEOMHRWW6N5K3KF3UU2I2QABPKRVV2NRIO5WMRCG46AHIW6YWKRJI7Y |
| SILVER     | 1258524099 | 246519683  | 1258524381 | 1258524382  | JK4OF7KFXTH4FPXM7WJP2QR7PS5OCTO64SPCSDQCVRS3OZXPCCE5ZAVKP4 |
| OPUL       | 1044267181 | 287867876  | 1044269355 | 1044269356  | VMRS35QRC5UVI5ZLGEDWFJX3464EBFRLD72NNJ2P34IWICCRBOG3YB2JX4 |
| WMPL       | 1166982094 | 1163259470 | 1166982296 | 1166982297  | G7DYFK6XGZEWCEMEQPTC6SYIVEIZPFXFGOKRIXO523JQZHYFD7IHM3YLIQ |

### Algorand Ecosystem&#x20;

| Pool  | App Id     | Asset Id   | F Asset Id | Fr Asset Id | App Address                                                |
| ----- | ---------- | ---------- | ---------- | ----------- | ---------------------------------------------------------- |
| ALGO  | 3184317016 | -          | 3184331013 | 3184331014  | AP3RK6OGPQLQ2V4ZKTNFENSOHKIYQ3ZVSSPCUVCOM2LXANDCCCQRQWWRFE |
| USDC  | 3184324594 | 31566704   | 3184331239 | 3184331240  | 266UR6IXNJ5SKC33R2QSLIFL743SA4O6EX3TJZUSB6CFKMFQYH4SAJIMSE |
| TINY  | 3184325123 | 2200000000 | 3184331789 | 3184331790  | ZC5CBMO3GBGXOXK6T2PXOZPYBD63LNOMZLC23LFTIWDRR3QWPZQN7UJMY4 |
| FOLKS | 3343137163 | 3203964481 | 3343139268 | 3343139269  | VN3QMQYRO7V6NQJYRKV5QFIP4IATCI4IBQ46QBOLWZ23255JJE4SMTGLOE |

### Loans

| Loan                  | App Id     |
| --------------------- | ---------- |
| General               | 971388781  |
| Stablecoin Efficiency | 971388977  |
| ALGO Efficiency       | 971389489  |
| Ultraswap Up          | 1202382736 |
| Ultraswap Down        | 1202382829 |
| Algorand Ecosystem    | 3184333108 |

### Oracle

| Oracle 0 App Id | Oracle 1 App Id | Oracle Adapter App Id |
| --------------- | --------------- | --------------------- |
| 1040271396      | 971323141       | 971333964             |

### xALGO - Liquid staking

<table data-full-width="false"><thead><tr><th width="378">Distributor App ID</th><th>Address</th></tr></thead><tbody><tr><td>1134695678</td><td>4MBB6O7EV2ZRIUKJT47B2NJ2BQPNJ3BQEQBPA7UN7MXWRG7U4OMPP6VOTY</td></tr></tbody></table>

<table data-full-width="false"><thead><tr><th>Chain</th><th>Contract Asset</th></tr></thead><tbody><tr><td>Algorand</td><td>1134696561</td></tr></tbody></table>

<table data-full-width="false"><thead><tr><th>Proposer</th><th>Address</th></tr></thead><tbody><tr><td>0</td><td>VVU2LEKHHCF2PACOOIMSH6WY6AM5XMFWZRGWVHR65CILVVS6F4PHNIH35Y</td></tr><tr><td>1</td><td>4TPMQLUIBMQ6ILR4FSBEWJACEOYJVYZ7PWL333KL47DHVT6TJHH55E5WWE</td></tr></tbody></table>

### Algo Liquid Governance

<table data-header-hidden><thead><tr><th></th><th width="175.33333333333331"></th><th></th></tr></thead><tbody><tr><td>Dispenser App Id</td><td>gALGOId</td><td>gALGO Address</td></tr><tr><td>793119194</td><td>793124631</td><td>GGP73AZM3CMLDLXUDVR2NIULL3M7SORSI4N7DFIOZTVL62UOVSQUTZYEA4<br></td></tr></tbody></table>

| Period | Distributor App Id | ALGO Address                                               |
| ------ | ------------------ | ---------------------------------------------------------- |
| 14     | 2629511242         | PCX64JROWO3II44O7764Z2PNDSJO46GNHUGS6K3372NSTDCVWABS7CRL4Y |
| 13     | 2330032485         | 3L3CR54W3ST2MR267FMLRE73VY3TL25EG2TVUCI3UW7B33ASE5HINSTQMQ |
| 12     | 2057814942         | 2FOMLJBG3E3LIQF3R3MUPQNZ6P5TP63SZRLD4Q54NXEYHLFUI5ESOSXDDM |
| 11     | 1702641473         | LVLETW33IEQ2GSKINNTNAX3TT4UJTZSLK4JTIIB7M757XDUOQLO4UWKBSU |
| 10     | 1282254855         | LJB7PYTBDIHLMBPLW5EI3GVMVBI3VISB3H65IIQ425ORDFIFTFQPGU6CKY |
| 9      | 1200551652         | CHVDA4JNRLXW4HIEQZZF2XBTUMACUS6QZEJCPYNJFKSNAWZOYLHYPY2OVE |
| 8      | 1136393919         | 7PLF33BQ4NTWUVKI5D7EX3IE2URAF3RBL6VXUDNHVVECVLWULEIVH5FYZU |
| 7      | 1073098885         | BMGLOOLLJUWLZGFGOK4JHGU54QC4XC6V247B3WJ55PLMMX337QHAEH7UVA |
| 6      | 991196662          | TPVTRTR5PVEEBBZ7TWWL63KMY2M7UFGKFAJGDLUOBEJZV7QMVYSGZIGYEM |
| 5b     | 902731930          | 3TMAFSWEIAHUYGT4P34SW5LIMAXRFPC4HQVF5AF2SJTOVACRXONLMTQCFY |
| 5a     | 887391617          | 2NBWLB4ZYRC6IKOEJT4HKVG7YCDEBRIOUSW7T2C7UKJFMMMCINDMIAQMME |
| 4      | 793119270          | EPYLSPIP3OOKRBFFWKZJWDSPGCYEKUPYBB677GWC2TFYTMU6QP3JZ7OMOQ |


# Official SDKs

{% hint style="danger" %}
Before using our official SDKs, please read the [Disclaimer](/community/disclaimer-privacy-policy-and-t-and-cs).
{% endhint %}

### Javascript SDK

{% embed url="<https://github.com/Folks-Finance/folks-finance-js-sdk>" %}


# Contact

### Join us on ⤵️

* [Discord](https://discord.gg/folksfinance) <img src="/files/MBqwDTWrxYwXKqZrWgM2" alt="" data-size="line">
* [Twitter](https://twitter.com/folksfinance) <img src="/files/gfTrcmrbfKEsgTTzh4oi" alt="" data-size="line">
* [Medium](https://folksfinance.medium.com/) <img src="/files/BtWdkI7LrTZvgF6ASYL1" alt="" data-size="line">
* ​​[Telegram](https://t.me/FolksfinanceOfficial) <img src="/files/AkCWDEHbWRkLTgWbeKGO" alt="" data-size="line">
* ​[Reddit](https://www.reddit.com/r/FolksFinance/) <img src="/files/v2eD5KPRt4Ac52szEo0Y" alt="" data-size="line">
* [Linkedin](https://www.linkedin.com/company/folksfinance/) ![](/files/AIRXdkw2zabwavHFwYwB)
* [Facebook](https://www.facebook.com/FolksFinance-110987081176361/) <img src="/files/cUi1vGJ5mr2a4y1jHeD4" alt="" data-size="line">


# Ambassador program

## Why have we started an ambassador program?

We recognize the need to inform, educate, and guide all people who want to be part of the global revolution DeFi will bring. Being a Folks Finance ambassador means making an impact on the industry you love. We hope to expand globally together with our community!

## What will an ambassador do?

The Folks Ambassador role is flexible; we’d like you to show ***your unique strengths***. Whether that be community management, translation, writing articles, making videos, creating memes, social media management, or running in-person events, every type of contribution is welcomed.

*Here are some examples of potential tasks an ambassador can accomplish:*

* Generate engaging content for the community: articles, reviews, videos, presentations, infographics, memes, podcasts.
* Translate our documentation, announcements, blog posts, explain newly-released features in your native language.
* Create and develop local communities and communication channels: Twitter, Discord, Telegram, Youtube, Medium, Reddit.
* Host meetups and present on behalf of Folks Finance.
* Represent your region in the official Folks Finance community.
* Get support for initiatives supporting the Folks Finance’s mission.
* Participate in regular update calls with other ambassadors and Folks Finance team members.

## **What could I get for being a Folks Finance ambassador?** <a href="#a490" id="a490"></a>

Each ambassador can propose the scope of their contribution, and that will directly determine the rewards they receive. Rewards may include:

1. Welcome kit from Folks:  Email signature, Background for calls, Cover for social media
2. Financial bonuses for your work
3. Folks Finance swag for organizing in-person events
4. Referral links for Liquid Governance, which makes you eligible for a share of the ALGO Liquid Governance revenue.&#x20;
5. Free Entry to In-Person Folks Events
6. Direct contact with the Folks Finance team for guidance and support
7. Access to the private Ambassador Discord channel

#### Become an [ambassador](https://docs.google.com/forms/d/e/1FAIpQLSeQLTV4UrFNEx88098ZXscVHC8ZERQw_Y-61JqbNCALB0PUQA/viewform)


# Brand & Logos

## Folks Finance brand assets

### Logo

Folks Finance icon can also be used without the logotype. Please don’t use “Folks” without “Finance” or vice-versa.

|                           Image                           | Description                                                                                          |
| :-------------------------------------------------------: | ---------------------------------------------------------------------------------------------------- |
|              ![](/files/hGdhBaiRhQVaqz8P6x6u)             | <ul><li>dApp icon</li><li>Standard icon</li><li>Icon on light backgrounds</li><li>Linkedin</li></ul> |
| ![FolksFinance\_Icon\_White](/files/U6Lok7tdKWxff84gNBbn) | Icon on dark backgrounds                                                                             |
|    ![FolksFinance\_token](/files/gOWY7ce6TYvQRjdzF58z)    | $FOLKS                                                                                               |
|              ![](/files/UtPCbXKu4dOvSfL2hnbv)             | Social media icon                                                                                    |
|              ![](/files/Plp93NYdVMwzCCRcPHSD)             | <ul><li>dApp logo </li><li>Standard logo </li><li>Logo on light backgrounds</li></ul>                |
| ![FolksFinance\_Logo\_White](/files/Io8CHRQlVofZ9Wkc1kD2) | Logo on dark backgrounds                                                                             |
|              ![](/files/OsEj25nnDg9o7ndWgjaz)             | gAlgo                                                                                                |
|              ![](/files/AaBq6uLR7BQarJ2j2YPr)             | xAlgo                                                                                                |

### Color Palette - Main Colors

| Color                                   | Folks Finance version | Description                                                           | Web                       | RGB            | CMYK                 |
| --------------------------------------- | --------------------- | --------------------------------------------------------------------- | ------------------------- | -------------- | -------------------- |
| ![](/files/btXy7KYXh2Uymr0KCF5I)        | V2                    | <ul><li>Logo</li><li>Social covers</li><li>CTA’s</li></ul>            | <p>#3669BB<br></p>        | 54- 105 - 187  | 71% - 44% - 0% - 27% |
| ![](/files/klEzin1N7HPKlstVuBtB)        | V2                    | Graphic background                                                    | #11141E                   | 17 - 20 - 30   | 43% - 33% - 0% - 88% |
| ![](/files/RBaOXIXZ6oydbNG55oJs)        | V2                    | <ul><li>Logo</li><li>Text</li><li>Dotted element</li></ul><p><br></p> | #FFFFFF                   | 255-255-255    | 0%-0%-0%-0%          |
| ![](/files/81QsUPkKHinoNJwai9k1)        | V2                    | Text on communications graphics                                       | <p>#5DBCEB</p><p><br></p> | 93-188-235     | 60%-20%-0%-8%        |
| ![#31d4f0](/files/YqxAyIh5JeUkJAHtD7sQ) | V1                    |                                                                       | #31d4f0                   | 49 - 212 - 240 | 62% - 0% - 10% - 0%  |
| ![#0069c5](/files/uNW5PoRwHpzm2EnRnuLX) | V1                    |                                                                       | #0069c5                   | 0 - 105 - 197  | 62% - 0% - 10% - 0%  |

### Color Palette - Secondary Colors

| Color                                                                                                             | Folks Finance version | Web     | RGB             | CMYK                  |
| ----------------------------------------------------------------------------------------------------------------- | --------------------- | ------- | --------------- | --------------------- |
| ![](/files/KS7oxvQi4fmQCCEjs7AJ)                                                                                  | V2                    | #203592 | 32 - 53 - 146   | 100% - 93% - 4% - 1%  |
| ![#ACCDF2](https://user-images.githubusercontent.com/84501430/157000438-d9d639dd-5ca2-4017-bc73-836627002ccc.png) | V1                    | #ACCDF2 | 172 - 206 - 242 | 29% - 15% - 0% - 5%   |
| ![#0B7ECD](https://user-images.githubusercontent.com/84501430/157000478-96b3c1f7-c69d-4011-bf04-9084e811eb30.png) | V1                    | #0B7ECD | 1 - 124 - 204   | 95% - 39% - 0% - 20%  |
| ![#001A59](https://user-images.githubusercontent.com/84501430/157000519-f71c732b-b3c7-4633-a5f8-1753818c01fc.png) | V1                    | #001A59 | 0 - 26 - 89     | 100% - 71% - 0% - 65% |
| ![#11141E](https://user-images.githubusercontent.com/84501430/157000552-8b1bcb77-91f7-4cf5-84ef-c33324b73a14.png) | V1                    | #11141E | 17 - 20 - 30    | 43% - 33% - 0% - 88%  |

### Gradient Palette

| Color                                                                                                                     | Folks Finance version | Decription              | Web                | Gradient |
| ------------------------------------------------------------------------------------------------------------------------- | --------------------- | ----------------------- | ------------------ | -------- |
| ![Logo Gradient](https://user-images.githubusercontent.com/84501430/157000651-30fda822-7be2-48af-a988-efee81dd03a5.png)   | V1                    | Blue to Light Blue      | #31d4f0 to #0069c5 | Linear   |
| ![Others Gradient](https://user-images.githubusercontent.com/84501430/157000703-86230c7e-ec6f-476f-95f2-c9dfaf2ef23f.png) | V1                    | Light Blue to Dark Blue | #ACCDF2 to #11141E | Linear   |

### Typeface

&#x20;The fonts used are open source.

<figure><img src="/files/1AUGjhU0fa4eaBaLsmEa" alt=""><figcaption></figcaption></figure>


# Community treasury

Folks Finance believes that transparency is a key pillar, so we have given the users the opportunity to **always keep track of the protocol revenue**.&#x20;

The treasury is used to cover potential hacks and other operations, subject to community approval

Click on the links below ⤵️ to have a look.

{% embed url="<https://allo.info/account/XQEOICBG6FMMBBWTBOWCMVJX5IQEDUSBF6L4MTSIALWRWODSOV2THX6GTU>" %}
V1 Folks Finance's Treasury
{% endembed %}

{% embed url="<https://allo.info/account/Q5Q5FC5PTYQIUX5PGNTEW22UJHJHVVUEMMWV2LSG6MGT33YQ54ST7FEIGA>" %}
V2 Folks Finance Treasury
{% endembed %}

{% embed url="<https://allo.info/account/AVBX7ME2FLXP6RA7FPI5C6Y6JJJ5JTNWKEFAOVRBCVJ3M4A66P3AQ427BE>" %}
Folks router fees (until claimed by treasury)
{% endembed %}

{% embed url="<https://allo.info/account/GSDBRGI2ULQX34I7NCJHIUKD3TZQFLVOAHXUEHA4Y2GAC3IJEZWWEFGFCY>" %}
Community liquidator address
{% endembed %}

### Where the revenue comes from?

Folks Finance revenue comes from different sources:

* borrow interests,
* liquidation fees,
* liquidation bots,
* flash loan,
* Liquid Governance fees,
* swap fees.


# Disclaimer, Privacy Policy and T\&Cs

### Disclaimer

FOLKS FINANCE is an open-source, non-custodial decentralised protocol comprised exclusively of autonomous smart contracts deployed on public blockchains (the “Protocol”). The Protocol is permissionless and ownerless by design and is not operated, managed, or controlled by any person or entity. The Protocol is not a financial, payment, investment, banking, lending, borrowing, deposit-taking, custody, brokerage, or money-transmission service in any jurisdiction.

Any terminology used on this website or within related interfaces, including without limitation “loan”, “borrow”, “lend”, “debt”, “deposit”, “collateral”, “liquidation”, “LTV” or similar expressions, is used solely as a technical or functional reference in a decentralised software context and does not carry the legal or regulatory meaning those terms may have in traditional or regulated financial environments.

The Protocol is not designed for, and must not be used with, tokenised securities or other “security tokens” (or assets that are marketed or structured as such). The Protocol does not provide or operate any payment or money-transmission service and is not intended to facilitate person-to-person payments or third-party payments as a protocol feature. Any token movements occur solely as a technical consequence of user-initiated interactions with smart contracts and the underlying blockchain.

Governance of the Protocol and its ongoing development are fostered by the FOLKS FINANCE PRIVATE FOUNDATION (the “Foundation”), a non-profit foundation. The $FOLKS token (and any other protocol-related tokens) is issued and administered by the Foundation through its subsidiary FOLKS INTERNATIONAL LTD. Neither the Foundation nor FOLKS INTERNATIONAL LTD operates or controls the Protocol’s smart contracts.

This website and the non-custodial graphical user interface enabling interaction with the Protocol are developed and maintained by BLOCKBOX LLC, acting as a software development and maintenance provider engaged by the Foundation. BLOCKBOX LLC does not own, control, manage, or operate the Protocol or its smart contracts. Access to the website/interface may be restricted or blocked (including by geography, sanctions screening, or risk controls) at the interface level only; such measures do not imply control over, nor do they modify, the Protocol.

BLOCKBOX LLC is a Virtual Asset Service Provider licensed and regulated in the Kutaisi FEZ (Georgia). Separately and independently from the Protocol, BLOCKBOX LLC operates a distinct, partially centralised application under its own terms, which may offer additional proprietary features/services and may also provide an alternative interface to access the Protocol. Any custodial or partially centralised features (if any) exist only within that separate application and are legally and operationally independent from the Protocol.

The website/interface may link to or integrate third-party services; any services provided by third parties are governed solely by the relevant third parties’ terms and are outside the Protocol. Nothing on this website constitutes legal, financial, investment, or regulatory advice, nor an offer or solicitation of any kind.

Privacy Policy

{% embed url="<https://docsend.com/view/apwfndk7p7k63wwd>" %}

Folks Finance DeFi Terms & Conditions

{% embed url="<https://docsend.com/view/j3anzuz9pt79rxmm>" %}

FOLKS token Term & Conditions

{% embed url="<https://docsend.com/view/tjmjstnf49gd8rsc>" %}

Folks Finance App Term & Conditions

{% embed url="<https://docsend.com/view/x3ch7agna8utmcz6>" %}


# FOLKS

<figure><img src="/files/ZnLHrOf0UwvPyerz4wJO" alt=""><figcaption></figcaption></figure>

The FOLKS token is the native asset of the Folks Finance protocol. Following the protocol’s crosschain architecture, FOLKS uses the[ NTT standard](https://wormhole.com/products/native-token-transfers) and is native on multiple chains. This means there’s only one token across all networks (no wrapping, no synthetic copies). \
\
Currently, FOLKS is natively live on: Avalanche, Ethereum, Base, BNB Chain, Arbitrum, Polygon, Algorand, and Sei Network.\
\
More native deployments will follow based on the Folks Finance chain integrations roadmap.

{% content-ref url="/pages/Hq6fooVofcJ050mbMELF" %}
[Tokenomics](/folks-token/tokenomics)
{% endcontent-ref %}

{% content-ref url="/pages/rTrRZdgC1tT69rI2pZJe" %}
[Airdrop](/folks-token/airdrop)
{% endcontent-ref %}

{% content-ref url="/pages/qKP3dcNyn7i18NOhPCUA" %}
[How to bridge FOLKS](/folks-token/how-to-bridge-folks)
{% endcontent-ref %}

{% content-ref url="/pages/yBzMGnJFNx9eEX39Ia8t" %}
[Utilities](/folks-token/utilities)
{% endcontent-ref %}


# Tokenomics

FOLKS is the native token of Folks Finance—powering perks, utilities, and governance.

<figure><img src="/files/IlGyKY0Cs702oWvhyVon" alt=""><figcaption></figcaption></figure>

The total supply of $FOLKS is fixed at 50,000,000 tokens.

* Community — 35.00%\
  Airdrops, User Incentives
* Ecosystem Growth — 24.73%\
  Liquidity, Partnerships, Marketing, Exchanges
* Seed Supporters — 21.83%\
  Long-term supporters who supported the protocol’s infancy.
* Strategic Supporters — 4.94%\
  Partners providing capital and strategic alignment.
* Core Contributors — 10.00%\
  The core contributors building and maintaining Folks Finance.
* Advisors — 3.50%\
  Experts guiding strategy, growth, and institutional expansion.

At TGE, 12,700,475 $FOLKS (25.40%) are unlocked, consisting of:

* Community (Airdrop): 0.67%/3.29%\*
* Ecosystem Growth: 24.73%\*\*

\* The total allocated to the airdrop upon TGE is 3.29%. Of that, around 0.67% (Unlocked Community Airdrop) represents an estimated value based on a projected ratio of 25% of users opting for instant claim versus 75% selecting the linear unlock option.\
\*\* The Ecosystem Growth allocation follows a projected distribution plan designed to sustain long-term ecosystem expansion.

#### Community Initial Allocation

To cement community ownership from the start, a portion of the total 35% community allocation has been reserved for direct distribution to early participants.

Airdrop Season 1 Eligibility includes (snapshot taken on October 24th, at around 11:00am UTC):

* Users with Folks Points: 3% of total supply&#x20;
* Founders Pass NFT holders: 0.16%
* Partner campaigns participants: 0.13% total, distributed as follows:\
  \- Okx Wallet: 0.05%\
  \- Airaa: 0.025%\
  \- Gate Wallet: 0.02%\
  \- Zerion Wallet: 0.02%\
  \- Galxe: 0.01%\
  \- Haha Wallet: 0.005%\
  \- Orbiter: 0.001%

The remaining portion of the community allocation will be released through future airdrop seasons and incentive programs.

#### Long‑Term Design

* Community allocations: Season 1 airdrops with instant claims or optional unlock, future airdrops, incentives, and campaigns.
* Ecosystem Growth: multi‑chain expansion, integrations, liquidity support, listings, and co‑marketing.
* Lock & linear unlocking: 12–30 months for Investors, Team, and Advisors to align incentives and reduce short‑term volatility.


# Airdrop

Claim your token here:

{% embed url="<https://claim.folks.finance/en>" %}

The Folks Finance airdrop is designed to reward the most active and engaged users while ensuring a fair and inclusive distribution for the entire community.

***

#### Distribution Methodology

Season 1 of the airdrop distributes 1,646,479 FOLKS tokens (3,29% of total supply), allocated across several eligibility criteria: Folks Points, Founders Pass NFT holders, and partner campaign winners (Okx Wallet, Haha Wallet, Zerion Wallet, Gate Wallet, Airaa mindshare campaign, Orbiter campaign, Galxe campaign).

Snapshot was taken on October 24th, 2025, at \~11:00 UTC. Points or NFTs obtained after this snapshot already count toward eligibility for future seasons.

Folks Points allocations are determined by users’ performance in the Leaderboard campaign, using a natural logarithm function to balance score disparities between top and mid-tier participants. Minimum eligibility is 1,000,000 points.

Each Founders Pass NFT grants 30 $FOLKS, cumulative by quantity. Addresses that also have ≥ 1 M points receive a bonus based on their NFT tier:

* 1 or more Silver NFTs → +10 $FOLKS
* 1 or more Gold NFTs → +20 $FOLKS
* 1 or more Black NFTs → +30 $FOLKS

If an NFT was held before the snapshot but is not linked to an xChain account or Algorand address, the allocation doesn’t show in the checker and won’t be possible to claim manually, but will be airdropped directly to that wallet shortly after claim goes live.

Partner campaign and NFT allocations are not subject to the Instant / Linear Unlock claim options — they are fully claimable immediately in both cases.

Rewards from Zerion Wallet and the Airaa mindshare campaign will be distributed directly by them. Follow their official channels for updates.

***

#### Claiming Options

Eligible users receive the airdrop full amount only if they decide to opt for a 3-month linear unlock. Alternatively, users have the option to instant claim and receive a partial amount.

The claim window (for both options) runs from November 6, 13:00 UTC to December 16, 14:00 UTC.\
For clarity, in the examples we will use a scenario where User A is eligible for a total airdrop allocation of 100 FOLKS.

**Instant Claim**\
Users receive 20% of their allocation immediately, with no further action required after claiming.

E.g. User A decides to Instant Claim and receives only 20 FOLKS from the total 100 FOLKS allocation.

**Linear Unlock Claim**

Users receive 10% of their allocation immediately, and the remaining 90% unlocks linearly over 90 days from the beginning of the unlock period.\
The unlock period runs from December 16th, 2025, at 14:00 UTC to March 16th, 2026, at 14:00 UTC, users can claim unlocked tokens at any time during this period.\
The claiming window will close on March 31st, 2026, at 14:00 UTC. Any unclaimed tokens after this date will be lost.

E.g. User A decides to opt for the Linear Unlock Claim. They receive 10 FOLKS immediately, then 1 FOLKS per day over the 90-day unlock period.

{% hint style="warning" %}
**General warnings:**

* Users must choose between Instant Claim and Linear Unlock Claim before December 16, 2025, at 13:00 UTC. Failure to make a choice by this deadline results in permanent loss of the entire airdrop allocation.
* Once a claim option is selected and confirmed, it cannot be changed.
* The Linear Unlock period begins on December 16, 2025, at 14:00 UTC, and continues for 90 days until March 16, 2026, at 14:00 UTC.
* Once the unlock period ends, users have until March 31, 2026, at 14:00 UTC to claim any remaining unlocked tokens. Any unclaimed tokens after this date will be permanently lost.
  {% endhint %}

#### List of the contracts the user interacts with for the airdrop:

* Avalanche: 0xf1af32bD9978eC0Fcbc2b382EA8a28aa3c595c39
* Ethereum, Base, Arbitrum, BNB Chain, Polygon, Sei EVM: 0xEA87695E4b95109F333997Aa9B306dcA9EBFa69B
* Algorand 3301499411

FOLKS token:

* Avalanche, Ethereum, Base, Arbitrum, BNB Chain, Polygon, Sei EVM: 0xFF7F8F301F7A706E3CfD3D2275f5dc0b9EE8009B
* Algorand 3203964481


# How to bridge FOLKS

{% embed url="<https://xportal.folks.finance>" %}

<figure><img src="/files/bcshPQkvRp2XQt40vee4" alt=""><figcaption></figcaption></figure>

1. Connect your EVM wallet&#x20;
2. Select the destination chain&#x20;
3. Enter the destination address&#x20;
4. Select the network where you want to receive the tokens&#x20;
5. Select how you want to pay the gas fees (native token or in $FOLKS)&#x20;
6. Click on “Review & Bridge”
7. Click on “Confirm Transfer”&#x20;
8. Wait for your tokens to land on your destination chain&#x20;


# Utilities

{% hint style="warning" %}
Warning: some of the following utilities might still not be live
{% endhint %}

* **Folks Finance Governance** — enables certain active users to steer elements of future protocol development.
* **Folks Router Discounted Fees** — applied to swap transactions through Folks Router on Algorand.
* **Crosschain DEX Aggregator Discounted Fees** — applied to swap transactions through Li.Fi’s crosschain DEX aggregator on xChain.
* **Folks xPortal Discounted Fees** — applied to bridging fees on xPortal (powered by Wormhole NTT).
* **FOLKS as “Gas Token”** — reduce operation transaction fees on xChain by paying in $FOLKS.
* **xGov Voting** — participate in xGov proposal votes on Algorand.
* **Liquidity Incentives** — boost rewards for active market participation.
* **Mobile App and Debit Card Perks** — discounted fees and tiered perks related to Folks Mobile.&#x20;
* **Future Utilities** — additional use cases and expanded token utility will be introduced progressively, especially with the launch of Folks xChain V2.


