Folks Finance, the DeFi app on Algorand, continues its expansion into new networks by bringing xALGO into the Avalanche ecosystem.
Powered by Wormhole technology, this is reportedly “the first Avalanche-Algorand cross-chain DeFi product available.”
xALGO is a liquid staking derivative; “a yield-bearing version of ALGO which accrues value from Algorand Governance rewards. It is designed to consistently rise against the price of ALGO as the interest from Governance is collected.”
xALGO went live on BNB Chain “in May 2023, and Avalanche is the second chain to welcome the premier ALGO liquid staking product.”
xALGO can be obtained “through two primary methods: minting and swapping.”
Minting xALGO is a simple process of “committing ALGO on the Folks Finance app, which will initiate minting and depositing of the xALGO into an Avalanche wallet.”
You can also swap for xALGO on their partner DEX Trader Joe. Upon launch, two pools will be established for xALGO.
xALGO/AVAX — Essential for “bootstrapping adoption and sparking interest in the community.”
xALGO/sAVAX — In partnership with Benqi, the DeFi protocol on Avalanche, we’ve established a pool between the two liquid staking derivatives.
Benedetto Biondi, CEO of Folks Finance, said:
“Our team has been researching which chain to dock our xALGO ship, metaphorically speaking. We needed a high quality network with a vibrant community. On Avalanche, we found great partners in Trader Joe and Benqi, so we determined it was the best place to bring xALGO.”
Matthew Schmenk, Sr. BD Associate at Ava Labs, said:
“We’re excited to see further expansion of liquid staking possibilities in the Avalanche ecosystem. This is a good opportunity for Folks Finance to leverage the Trader Joe and Benqi networks to bootstrap adoption.”
Dan Mgbor, Cofounder at BENQI, said:
“Liquid staking tokens (LSTs) will continue to gain adoption across the industry and it is important to establish close partnerships between the premier LSTs of each ecosystem. We are delighted to be working with Folks Finance to help accelerate the cross-chain adoption of xALGO and expand the utility of sAVAX.”
Blue, Head of Marketing & Growth at Trader Joe, said:
“We’ve been in contact with the Folks Finance team for a number of months and we’re delighted to now move forward and help onboard xALGO to the Avalanche Ecosystem. Furthermore, it’s great to collaborate alongside Benqi to make this happen.”
The minting period opens “after January 5th and will last until January 15th, 2024. Written and video tutorials on how to mint or obtain xALGO will be published in the first week of January.”
As noted in the update, Folks Finance is “a DeFi platform providing innovative tools for lending, borrowing, trading and managing digital assets, all in one place. Folks Finance streamlines the DeFi experience with a UI and UX competitive to centralized exchanges, all while running on permissionless smart contract technology.”
Folks is supported by investors “such as Borderless Capital, Jump Crypto, ParaFi Capital, Coinbase Ventures, OKX Blockdream Ventures, Genesis Capital, and the Algorand Foundation.”