Folks Finance on Avalanche: A Deep Dive Into xChain Lending and the 2025 Token Launch
Folks Finance is helping position Avalanche as a core hub for crosschain lending, offering a more efficient way to move, stake, and borrow assets across multiple networks.
Folks Finance is a user-friendly decentralized finance (DeFi) platform focused on lending, borrowing, and liquid staking, but with a twist. It works smoothly across multiple blockchains, so you’re not stuck in just one ecosystem. Starting out on Algorand back in April 2022, Folks has grown to serve over 200,000 users on eight different networks, including Avalanche, Ethereum, and Polygon.
The standout feature? Its smart xChain setup lets you put your assets in one blockchain and borrow from another using an easy-to-use interface. No more juggling different wallets or worrying about clunky bridges.
What Folks Finance Offers
Crosschain Lending and Borrowing
You can:
Deposit AVAX on Avalanche and borrow ETH on Ethereum
Pay back your loans from any connected chain
Enjoy consistent interest rates no matter which network you use
Folks uses Circle’s native USDC transfer tech (CCTP), so no risky wrapped tokens or slow bridges.
Liquid Staking Integration
The protocol supports liquid staking derivatives (LSTs) including:
sAVAX (via Benqi on Avalanche)
xALGO (crosschain from Algorand)
Users can stake assets to earn yields while keeping their capital productive as collateral for borrowing.
Better Capital Efficiency
Folks Finance’s architecture centers on a single, unified USDC pool hosted on Avalanche and accessible across all spoke chains. This means:
Higher yields for lenders
Lower borrowing costs
Less wasted capital sitting idle on different chains
Real Growth and Strong Numbers
Folks Finance isn’t just talk. It’s proven its value with:
200,000+ users
$400 million peak total value locked (TVL)
Around $200 million TVL at the moment
Support for 9 blockchains
More than 10 security audits, including from OtterSec
15,000+ active wallets monthly on Algorand
Launching Avalanche as their main hub last year marked huge growth.
Why Avalanche as the Hub Chain?
Folks Finance selected Avalanche for several technical advantages:
Sub-second finality: Essential for real-time crosschain operations
High throughput: Supports more than 1000 transactions per second
EVM compatibility: Seamless integration with Ethereum ecosystem
Cost efficiency: Low transaction fees compared to Ethereum mainnet
Avalanche serves as the coordination layer, with Chainlink CCIP and Wormhole providing secure message passing between chains.
The $FOLKS Token Launch
Launch Details
Date: November 6, 2025
How it works: Native crosschain transfers via Wormhole
Token Role and Utility
The $FOLKS token will become the core unit of coordination across all Folks Finance products, governing protocol decisions and powering long-term incentive frameworks.
The token is designed to align stakeholder interests with the protocol’s growth and success across its multi-chain ecosystem.
For the latest information on $FOLKS token utility, distribution, and mechanics, follow Folks Finance’s official social channels.
How to Get Involved
Before the Launch:
You can still earn eligibility for airdrops by lending, borrowing, and moving assets crosschain. The Avalanche Foundation has put up 13,145 AVAX (~$300K) to reward activity aimed at growing TVL.
After Launch:
Use your $FOLKS across DeFi, boost your APR, and help steer the platform’s future.
Post-TGE Roadmap
The protocol’s development plans include:
LST expansion: Enhanced stake-and-borrow features for liquid staking derivatives
Mobile application: Simplified access for retail users
xChain V2: Advanced vault lending across additional chains
Institutional products: Targeting professional users as crosschain DeFi matures
Conclusion
Folks Finance brings an exciting twist to DeFi by tackling the tough problem of fragmented liquidity across blockchains. Its November token event is a milestone for community governance and token incentives. For anyone interested in crosschain DeFi, now’s the time to explore and consider how it fits into the rapidly evolving landscape.
Ready to explore Folks Finance and join the future of crosschain DeFi? Visit their official channels to get started:
Website: https://folks.finance/
Documentation: https://docs.xapp.folks.finance/
X: https://x.com/FolksFinance
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