Folks Finance raises $7.5 million to expand Cross-Chain DeFi lending

Folks Finance has successfully closed a Strategic Fundraise led by Borderless Capital, at a valuation of $75 Million, lifting the total investments into the protocol to $7.5 Million. The new round provides the necessary fuel for the launch of a Cross-Chain expansion of the product suite, powered by Wormhole, Chainlink CCIP, and Circle CCTP.

Two years after its Mainnet launch, now with over $100M in TVL and 10,000 monthly active wallets, the largest DeFi App on Algorand is expanding its full set of DeFi tools cross-chain, beginning with the lending markets. The team aims to provide an alternative to Centralized Crypto Exchanges, offering secure, transparent, and efficient financial tools powered by smart contracts. The product suite includes lending and borrowing, swaps, leverage trading, a fiat on/off ramp, liquid staking, and leveraged liquid staking.

The Folks team will launch its Hub & Spoke lending using Chainlink CCIP, Wormhole, and Circle CCTP to enable cross-chain messaging and transfers. Avalanche, Base, Ethereum, and Arbitrum are set as the initial deployments for April 2024. The team forecasts around 15 chains to be integrated by the end of the year.

The platform will give users complete control over their portfolios using the network and wallet they prefer, which concentrates liquidity and unifies the Folks Community across every connected chain.

The product roadmap also includes the FOLKS governance token, which will be released following the launch of the Cross-Chain expansion.

Folks welcomes a larger network of investors that add to those who participated in the 2022 Seed Round, which included Coinbase Ventures, Jump Crypto, OKX Blockdream Ventures, Youbi Capital, Parafi, and more.

Notable contributors to the Strategic Round include round-leaders Borderless Capital, Algorand Ventures, Mapleblock, DCI, DuckDao, HC Capital, and Titan Ventures, amongst others. The diverse consortium of investors highlights the widespread belief in Folks Finance’s vision and its potential to redefine the DeFi landscape.

Benedetto Biondi, CEO Folks Finance, said: “Folks has now passed an important additional milestone in its path. We’ve been working intensively with the team to onboard the right partners for our future growth and expansion. Now that the round is done, we’re very excited about what our new investors can provide for Folks Finance in 2024.”

David Garcia, Managing Partner Borderless Capital, said: “The successful funding round reaffirms Folks Finance’s intention to make a lasting impact on the DeFi sector. With a robust roadmap and the backing of elite investors, Folks Finance is well-positioned to drive the next wave of financial innovation.”

Folks Finance is a DeFi hub pioneering innovations in lending, borrowing, trading, and managing of digital assets seamless across multiple blockchains.

Folks Finance streamlines the DeFi experience with an experience competitive to centralized exchanges, all while built on permissionless smart contract technology.