Polygon provides $300,000 funding to Folks Finance to promote cross-chain lending on the PoS network

Odaily Planet Daily reports that Polygon has provided $300 thousand in funding to the decentralized lending protocol Folks Finance to support its deployment of a cross-chain lending solution on the Polygon PoS network, aiming to integrate liquidity and simplify the multi-chain lending experience.

According to official information, Folks Finance adopts an innovative "hub-and-spoke" architecture, allowing users to collateralize assets on one chain and seamlessly borrow on another. This solution operates through coordination of three cross-chain communication protocols: Circle CCTP, Chainlink CCIP, and Wormhole, avoiding asset security and operational complexity issues caused by traditional bridges.

The funding will be disbursed in three installments, with the first installment of $100 thousand equivalent in $MATIC tokens already distributed. Polygon stated that after Aave reduced its deployment on the PoS chain, a gap emerged in the lending market, and this funding to Folks Finance is an important measure to fill that gap.

Folks Finance also launched the "Folks Points" reward system to incentivize user behavior within the protocol. In addition to Polygon, Folks Finance has previously received support from the Avalanche and Arbitrum foundations. (Cointelegraph)