Targeted DeFi rewards distribution plan

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%
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.


i dont like how the ALGO-gALGO lending pool gets ~15% and the stableswap on pact only ~5.5% (which is waaay more efficient)

i know you have problem with people leveraging gALGO but then maybe try to work on another solution and not market leveraging that aggressively when you end up with problems. the lending pools also cant be used by aggregators easily so they might not get used as much. additionally, you literally asked AF for liquidity for the stableswap because you had problems with the peg of gALGO and now you have the ALGOs to strengthen its peg and you choose to use it to allow people to leverage more like why? its frustrating to see how much is focussed on allowing people to 4x leverage


With the lending pools you don’t have the governance rewards of course so I guess the extra allocation is to keep them attractive. I do agree though; I wouldn’t mind if the regular gAlgo/Algo pools get a higher allocation. Or that it’s used to strengthen it’s peg.


Hey Lobo, we know the importance of the stableswap, in fact, in the end, the % of the stableswap will be higher than the % of the lending pool. As I said above, we have been working with the other protocols.


We understand your concern but there will be incentives from other protocols which factored into our decision. We will wait for their announcements on these. Also lending pools are a much more effecient way of deploying liquidity - hopefully in the future they will be supported by DEX aggregators and maybe we will see a stableswap ALGO-gALGO lending pool.


i hope you can work with pact to get a gALGO-ALGO stableswap lending pool up for next period, that would be awesome and fix these problems

btw vestige requested a xGov grant that would cover integrating lending pools, i hope they get it


incentive for stablecoin such as USDC and USDt should be encouraged significantly. the only common token that exists on other chains is USDC and USDt, much more resources should be allocated to these 2 to for ecosystem growth


nice, that would be awesome

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