Summary
This publication is intended to give the community an overview of the decision to add wAVAX and wSOL to Folks Finance
Abstract
wAVAX (Wormhole) is a bridged version of AVAX on Algorand. AVAX is the native currency of the Avalanche blockchain.
wSOL (Wormhole) is a bridged version of SOL on Algorand. SOL is the native currency of the Solana blockchain
Adding wAVAX and wSOL to Folks Finance is a strategic move that can boost growth, innovation, and community engagement. It highlights the protocol’s commitment to expanding its reach across multiple blockchain ecosystems and striving to make DeFi more accessible and easier
Motivation
The addition of wAVAX and wSOL to Folks Finance represents a strategic move in broadening its reach and influence within the DeFi ecosystem. Here are a some motivations:
- Gathering New Liquidity:
- Attracting Capital: Folks Finance aims to attract capital from those holding AVAX and SOL, thereby increasing the total locked-in value (TVL) in the protocol.
- Asset Diversification: Listing wAVAX and wSOL add to the range of assets available on Folks Finance, providing users with more choices and diversification options. Liquidity providers can benefit from new investment opportunities for their strategies and other products that could be developed using wAVAX and wSOL. Traders and investors can create more complex and tailored investment strategies, leveraging wAVAX and wSOL in combination with other assets on the platform.
- Listing a Native Asset of Another Chain:
- Cross-Chain Interoperability: This move highlights the effort to bridge different blockchain ecosystems. By embracing the Avalanche and Solana community, Folks Finance is taking a step toward cross-chain DeFi, enabling seamless interaction between different blockchain networks.
- Community Engagement: Involving the Avalanche and Solana community will lead to attracting new users and potential partnerships.
- Long-Term Goals Alignment:
- Algorand x Chains: This aligns with the vision of Folks Finance to connect Algorand with other chains
Specification
Ticker: wAVAX(Wormhole)
ASA ID: 893309613
| Parameter | Value |
|---|---|
| Collateral Factor | 65% |
| Borrow Factor | 100% |
| Liquidation Max | 50% |
| Liquidation Bonus | 10% |
| Liquidation Fee | 10% |
| Collateral Cap ($) | 50,000 |
| Variable Base Rate (RV0) | 0% |
| Variable Slope 1 Rate (RV1) | 7.5% |
| Variable Slope 2 Rate (RV2) | 200% |
| Stable Additional Base Rate (RS0) | 1% |
| Stable Slope 1 Rate (RS1) | 1% |
| Stable Slope 2 Rate (RS2) | 200% |
| Stable Excess Rate (RS3) | 35% |
| Optimal Utilisation Ratio (Uopt) | 55% |
| Optimal Stable to Total Debt Ratio (Oratio) | 20% |
| Rebalance Up Utilisation Ratio (URU) | 90% |
| Rebalance Up Deposit Interest Rate Percentage (DIRRU) | 55% |
| Rebalance Down Delta (RD) | 20% |
| Retention Rate (RR) | 10% |
| Flash Loan Fee | 0.1% |
| Borrow Cap ($) | 50,000 |
| Single Stable Borrow Percentage Cap | 5.5% |
Ticker: wSOL (Wormhole)
ASA ID: 887648583
| Parameter | Value |
|---|---|
| Collateral Factor | 65% |
| Borrow Factor | 100% |
| Liquidation Max | 50% |
| Liquidation Bonus | 10% |
| Liquidation Fee | 10% |
| Collateral Cap ($) | 50,000 |
| Variable Base Rate (RV0) | 0% |
| Variable Slope 1 Rate (RV1) | 7.5% |
| Variable Slope 2 Rate (RV2) | 200% |
| Stable Additional Base Rate (RS0) | 1% |
| Stable Slope 1 Rate (RS1) | 1% |
| Stable Slope 2 Rate (RS2) | 200% |
| Stable Excess Rate (RS3) | 35% |
| Optimal Utilisation Ratio (Uopt) | 55% |
| Optimal Stable to Total Debt Ratio (Oratio) | 20% |
| Rebalance Up Utilisation Ratio (URU) | 90% |
| Rebalance Up Deposit Interest Rate Percentage (DIRRU) | 55% |
| Rebalance Down Delta (RD) | 20% |
| Retention Rate (RR) | 10% |
| Flash Loan Fee | 0.1% |
| Borrow Cap ($) | 50,000 |
| Single Stable Borrow Percentage Cap | 5.5% |