Folks Finance treasury

Hi,

Folks Finance (Algorand) treasury has a lot of funds just sitting and doing nothing. I suggest we put those funds into work to generate some yield.

Treasury idle funds:
~888k ALGO
~900k USDC
~1.47M xALGO
~1.4 goBTC
~1.4 wBTC
~22 wETH
~22 goETH
~1717 SILVER$
~15 GOLD$
~6 wSOL
~20 wAVAX
~23 wLINK

I suggest Folks Finance will deposit those listed funds above into their platform to get some yield, but to also boost some Folks Finance and Algorand ecosystem TVL figures. Hard to see any downside for this. Some might argue this will lower current lenders yields, but that also happens constantly when people deposit and withdraw funds, so I think that argument is not so valid.

Deposit method: Deposit funds in a way that it will give treasury V2 tokens, so people can more easily see actual treasury balance. Normally when deposited, V2 tokens are abstracted away from users, so people can not see V2 tokens in their wallet, but only in platform when they connect their wallets. That said, it is possible to “mint” V2 tokens and keep them in wallet instead of platform smart contracts. Treasury already has some V2 tokens in there.

Regards,
ROAM

Don’t these funds have to be available for users to withdraw?

Yes, they are just like if you deposit plain vanilla way. So if Folks Finance treasury deposits tokens normal way, those V2 tokens will be in smart contracts just like the actual funds. so funds & V2 tokens, both are in smart contracts. now what I suggest is, funds goes into smart contracts just like they normally would, but V2 tokens are held in treasury instead of smart contracts.

V2 token is just presentation of underlying funds in FF platform. bit like LP tokens represent actual funds deposited into liquidity pool. for example if you deposit funds into Tinyman, you get LP tokens into your wallet, so same idea in here. keep V2 (“LP”) tokens in treasury wallet.

Regards,
ROAM

Why do we have those funds just sitting?

1 Like

Hi Roam, thanks for the proposal.

We can evaluate a hybrid approach where certain strategic assets—such as USDC and ALGO—are deployed into the lending market , considering a percentage of them for this purpose, since the borrowing demand is higher.

Regarding asset visualization, there are a few fAssets in the treasury that were not deposited via the UI. However, we can use another explorer so that it correctly reflects the deposited assets as well if the future proposal will pass

1 Like

We never made a proposal to allow these assets to be used in DeFi, this requires a community vote as the purpose was not having them in SC. This can change if community accepts it

The funds mentioned above, they’re not deployed in the lending market, they’re sitting in the wallet. It is the protocol revenue and at Folks we decided to allocate it to the community treasury

thank you for the reply.

My main point was just to put assets into work, so it doesn’t really matter if deposited assets are in smart contract or V2 tokens in wallet. I just thought it would be cool to still see assets in easy way, but if you can show total holdings some other way, then no need to use V2 tokens.

Can you give your view or allocation, which assets and how much can be deposited into the platform, pls.

Regards,
ROAM

We will make a proposal and collect users feedback and in case proceed with a voting session. At the moment the fAssets shown here: https://explorer.perawallet.app/address/Q5Q5FC5PTYQIUX5PGNTEW22UJHJHVVUEMMWV2LSG6MGT33YQ54ST7FEIGA/ are the ones deposited in the lending.

1 Like