Odaily News Polygon has provided $300,000 in funding to the decentralized lending protocol Folks Finance to support its deployment of a cross-chain lending solution on the Polygon PoS network, aiming to integrate liquidity and simplify the multi-chain lending experience.
According to the official introduction, Folks Finance adopts an innovative "hub-and-spoke" architecture, which allows users to pledge assets on one chain and seamlessly borrow and lend on another chain. The solution is coordinated through three cross-chain communication protocols: Circle CCTP, Chainlink CCIP, and Wormhole, avoiding the asset security and operational complexity problems brought by traditional bridging.
The funding will be distributed in three installments, of which the first installment of MATIC tokens worth $100,000 has been distributed. Polygon said that after Aave reduced its deployment on the PoS chain, a gap appeared in the lending market, and the funding for Folks Finance is an important measure to fill this gap.
Folks Finance also launched the "Folks Points" points system to incentivize user behavior within the protocol. In addition to Polygon, Folks Finance has previously received support from the Avalanche and Arbitrum Foundations. (Cointelegraph)