Folks Finance EUR stablecoin

General Discussion
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Hi Folks Team,

I put this under general discussion because I am not sure if Folks Finance Team feels like they want to go to this path.

I ask if you are interested in to create algorithmic EUR stablecoin (here EURF just for sake of example) backed with assets supported in Folks Finance.

Took this idea from Aave with small twist. Instead of USD this would be EUR stablecoin, because there are already so many USD stablecoins, but no EUR stablecoin at all in Algorand ecosystem. so you can have a first mover advantage.

In general people would be able to mint EURF tokens from Folks Finance platform like they now borrow any other asset. So they have to add collateral just like now when they borrow, but instead of borrowing existing assets, they will mint new EURF tokens.
And they can pay this back in a regular manner like now with any other asset. So there will be no any difference from users point of view compared to other assets, just new stablecoin.

Folks Finance will benefit from this by collecting all the interests from EURF. Now when people mint new EURF tokens they naturally have to pay interest against their borrowings. Because Folks Finance is the only one who is able to mint EURF, they are only who can collect interests from these borrowings if deposit APY is 0%. (at least from source and secondary markets are irrelevant to cover in here.) Or Folks Finance can set deposit APY to be less than collected interests from borrowings. This way Folks Finance can create significant income stream to fund future development of the platform.

If we look further into the future when FOLKS tokens are distributed. Folks Finance can choose to give FOLKS stakers discount from EURF borrowing rates with some ratio like 1:1 where one staked FOLKS authorizes to borrow one EURF token with discounted rate. This will give FOLKS tokens some monetary value.

I know this is a long shot, but would be nice to hear what you think about this kind of proposals. Is this the way you want to go or will you stay out of stablecoins?

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Hi Roam, thanks for sharing your thoughts.
Folks Finance’s current plans do not include the creation of a new stablecoin. On the other hand, we are always ready to consider the listing of new assets in the lending market, taking into account the whitelisting process.
Benefits for FOLKS holders will be announced as we get closer to TGE.

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Ok. Let me know if this becomes relevant.

I hope you don’t mind if I continue this thread with another question. If you feel like this need it’s own thread, feel free to create it :slight_smile:
Can you tell me and community your guidelines when you can consider some assets to be added into the Folks Finance, like requirements for market cap, liquidity in liquidity pools, trading volume etc. It would be nice to know, so we do not suggest unsuitable tokens needlessly.

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No problem, you can ask anything you wish.
Main requirements:

  1. On-chain liquidity (most important)
  2. Token Use-cases
  3. Technical parameters
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It’s a good idea, but it would have to be developed very carefully, because I don’t think governments like it.