Polygon provides $300,000 grant to Folks Finance to promote cross-chain lending on PoS network

Odaily Planet Daily News Polygon has provided a grant of $300,000 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, allowing users to collateralize assets on one chain and seamlessly borrow on another. This solution operates in coordination with three cross-chain communication protocols: Circle CCTP, Chainlink CCIP, and Wormhole, avoiding the asset security and operational complexity issues associated with traditional bridging.
The grant will be distributed in three installments, with the first installment of $100,000 worth of MATIC tokens already disbursed. Polygon stated that after Aave reduced its deployment on the PoS chain, a gap emerged in the lending market, and this grant to Folks Finance is a significant move to fill that gap.

Folks Finance has also launched a "Folks Points" reward 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)