Summary
This publication provides an overview of the decision to list wLINK on Folks Finance.
Abstract
wLINK (Wormhole) is a bridged version of LINK on Algorand. LINK is Chainlink’s native token. It is a utility token that is used for various purposes on the network: to incentivize data accuracy, to keep contracts stable, and to reward nodes for their work in validating transactions. By listing LINK, Folks Finance intends to tap into Chainlink’s expansive network and ecosystem.
Motivation
The introduction of wLINK to Folks Finance underscores several strategic angles:
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Strengthening Partnerships: By integrating wLINK, Folks Finance strengthens its already active collaboration with the Chainlink team and its extensive network of developers and projects. Chainlink’s established market position offers opportunities for mutual growth.
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Capital Influx: The inclusion of wLINK will bring external liquidity to the Folks Finance protocol, given Chainlink’s considerable market capitalization and its large and active community. This could significantly boost the Total Value Locked (TVL) in the Folks Finance protocol.
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Asset Diversification: Adding wLINK enhances the diversity of assets available on Folks Finance. Users will be afforded greater flexibility in their choices, from a simple wLINK holding to more intricate strategies, potentially intertwining wLINK with other assets in the Folks Finance ecosystem. Liquidity providers could unlock novel opportunities and products by leveraging wLINK.
Specification
Ticker: wLINK (Wormhole)
ASA ID: 1200094857
| Parameter | Value |
|---|---|
| Collateral Factor | 65% |
| Borrow Factor | 100% |
| Liquidation Max | 50% |
| Liquidation Bonus | 10% |
| Liquidation Fee | 10% |
| Collateral Cap ($) | 50.000 |
| Variable Base Rate (RV0) | 0% |
| Variable Slope 1 Rate (RV1) | 7.50% |
| Variable Slope 2 Rate (RV2) | 200% |
| Stable Additional Base Rate (RS0) | 1% |
| Stable Slope 1 Rate (RS1) | 1% |
| Stable Slope 2 Rate (RS2) | 200% |
| Stable Excess Rate (RS3) | 35% |
| Optimal Utilisation Ratio (Uopt) | 55% |
| Optimal Stable to Total Debt Ratio (Oratio) | 20% |
| Rebalance Up Utilisation Ratio (URU) | 90% |
| Rebalance Up Deposit Interest Rate Percentage (DIRRU) | 55.0% |
| Rebalance Down Delta (RD) | 20% |
| Retention Rate (RR) | 10% |
| Flash Loan Fee | 0.10% |
| Borrow Cap ($) | 30.000 |
| Single Stable Borrow Percentage Cap | 5.50% |