Folks Finance recently unveiled its decision to utilize Avalanche for its cross-chain lending application, highlighting Avalanche's comprehensive features including leveraged trading, lending, liquid staking, on/off ramp services, leverage liquid staking, and swaps.

With Folks Finance's versatile product suite, users appreciate its robustness and adaptability for various market strategies. The platform's recent announcement sheds light on the rationale behind selecting Avalanche for its lending app.

Positioned as an L1 blockchain on Ethereum, Avalanche stands out for its robust network security, low transaction fees, and high transaction speed, attracting a significant user base of 100,000 daily active customers across NFT, gaming, and DeFi sectors.

Folks Finance aims to establish a prominent presence within the Avalanche DeFi ecosystem, leveraging Avalanche as the foundation for its product line to introduce unique functionalities like margin trading and leveraged liquid staking without futures or perpetual contracts.

The forthcoming Folks cross-chain lending app adopts an intuitive hub-and-spoke model with Avalanche serving as the central connector among the spoke-chains, facilitating capital and information flow between networks through Chainlink CCIP and Wormhole.

As the Hub Chain, Avalanche will operate a USDC pool accessible to every Spoke Chain, enhancing stablecoin liquidity across the ecosystem with Circle CCTP integration, enabling users to borrow significant amounts of USDC compared to restricted liquidity pools in DeFi.

This unified pool offers users attractive interest rates on stablecoin borrows, along with reduced volatility and enhanced predictability in the lending market, emphasizing strategy over rates in the current focus.

While Avalanche plays a pivotal role in upcoming initiatives, the Folks Finance team remains at the forefront, leading efforts to integrate additional networks in 2024, aiming for a streamlined DeFi experience.