Decentralized lending has long suffered from fragmented liquidity, forcing users to move assets across risky bridges or rely on synthetic substitutes. Folks Finance is a decentralized lending protocol addressing this challenge with an innovative architecture that unifies liquidity while allowing easy access from multiple blockchains. The protocol recently received a $300,000 grant from blockchain platform Polygon to accelerate user’s crosschain lending deployment on Polygon’s proof-of-stake network. The grant is structured in three tranches. It marks a strategic moment for the Polygon’s lending landscape. The first tranche of the grant is $100,000 in Polygon (POL) tokens. It is already transferred on the network.

For users, this development means improved liquidity, streamlined user experiences and a safer way to borrow and lend across different blockchains without any barriers. The users who participate will also earn “Folks Points”. It is a specialized loyalty system designed to track and reward meaningful engagement within the protocol. Folks Finance doesn’t silo liquidity or force users into cumbersome bridges. Instead, liquidity from multiple chains is pooled together into a single hub, allowing users to deposit collateral on one chain and borrow crypto on another chain. For example, a user can supply USDC on Arbitrum, watch that deposit appear instantly in the main pool on Polygon, then open a wETH loan on Avalanche without touching a bridge.

The $300,000 grant is not the only backing Folks Finance has received. The protocol has also received grants from the Avalanche and Arbitrum Foundations, reflecting a growing alignment across major ecosystems to support the rise of the crosschain lending. With support from multiple ecosystems, Folks Finance has the potential to drive fresh momentum in crosschain lending and offer new opportunities to users across Polygon and beyond. For more info you can see their website https://xapp.folks.finance .