Folks Finance is eligible to receive 1.875 million ALGOs from the Algorand Targeted DeFi rewards program. During the GOV7 voting period, the governors voted in favour of an increase in the total amount of Targeted DeFi rewards from 5 million to 7.5 million ALGOs.
In addition, 5% of the previous period’s amount (1.25M) , 62,500 ALGOs was set aside.
In the same way, 92,500 ALGOs from this period are set aside for the next one
Taking this into account, the total amount available for distribution during this period is 1.845M (1.875M + 62.5K - 92.5K).
Rewards Allocation
Rewards are intended to be allocated according to the following proposed distribution:
| Proposed Allocation | |
|---|---|
| Deposit boost | 19.74% |
| USDC | 17.02% |
| USDt | 2.71% |
| — | |
| Liquidity Pools (gALGO/ALGO) | 6.89% |
| Stableswap on Pact | 5.42% |
| Tinyman | 1.46% |
| — | |
| gALGO Pairing | 3.52% |
| gALGO/USDC on Humble | 1.90% |
| gALGO/USDt on Humble | 0.54% |
| gALGO/goUSD on Pact | 1.08% |
| — | |
| Lending Pools | 63.59% |
| ALGO/gALGO | 14.64% |
| wETH/ALGO | 1.08% |
| wBTC/ALGO | 1.08% |
| GARD/ALGO | 2.71% |
| GARD/USDC | 1.36% |
| ALGO/USDC | 18.98% |
| USDC/USDt | 18.44% |
| wAVAX/ALGO | 2.17% |
| wSOL/ALGO | 1.76% |
| wMPL/ALGO | 1.36% |
| — | |
| Marketing Initiatives aimed at increasing TVL | 6.26% |
Note: Folks Finance has collaborated with the other protocols for joint distribution, which will result in an increase in the rewards allocated to the pools. We recommend that you consult the Targeted Rewards plans of our partners.
Allocation may vary during the period
Lending Pools overview
The traditional AMM pool involves pooling two assets, allowing users to trade one or the other, paying a fee to liquidity providers. Although liquidity is always available, this system has the disadvantage of leaving assets unused for long periods of time. For this reason, Folks Finance aims to make this “dormant” liquidity more efficient by making it available to be borrowed. The Liquidity Providers will be able to earn both swapping fees from DEX side and lending interest from Folks Finance as their assets are utilized in both the lending and AMM protocols. This is possible by creating pools of fTokens (read more about them here) instead of the normal assets ordinarily used in Liquidity Pools. This results in an APR for the liquidity provider which is composed of both deposit interest on the lending portion and swap fees on the dex portion.