We would like to inform you of upcoming changes regarding the gALGO pool in the Folks Finance lending market
This change follows the recent update of Algorand from a Governance to a Staking rewards model, and the complete migration of Folks Finance liquid staking solution from gALGO to xALGO.
Unlike gALGO, xALGO accrues staking rewards directly into the value of the asset, offering a more efficient user experience.
Changes to gALGO Collateral Parameters:
As part of the deprecation process, the following adjustments will be made:
- The Collateral Factor for gALGO under the General Loan Type will be reduced from 65% to 0%.
- The Collateral Factor for gALGO under the ALGO Efficiency Loan Type will be reduced from 82.5% to 0%.
These changes effectively disable the use of gALGO as collateral on the platform.
We strongly advise all users to:
• Repay any open loans that are currently collateralized with gALGO.
• Remove gALGO from collateral positions to avoid liquidation risk.
Implementation Schedule
The deprecation process will begin on June 12, and will be phased over 8 weeks to give users ample time to adjust their positions.
We encourage all users to transition to xALGO, which offers an upgraded and reward-accruing liquid staking experience fully aligned with the latest network developments.
For more details on xALGO and the updated staking mechanisms, please refer to our documentation xALGO - Liquid Staking | Folks Finance