Lending & Earning Yield: Deposit supported assets on any integrated chain through the Folks Finance dApp to start earning immediate yield.
- Using Liquid Staking: Deposit ALGO to receive gALGO or xALGO tokens, which allows them to participate in governance and earn staking rewards while keeping the asset usable within DeFi.
- Governance Participation: Acquire the $FOLKS token (now listed on major exchanges) and use it to vote on key protocol decisions through the Folks Forum.
- Community Rewards: Look out for future airdrop seasons, community campaigns, and incentive programs (like the past "Folks Points" campaigns) that reward active participation and platform usage.
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| Folks Academy |
LIQUID GOVERNANCE & COMMUNITY PARTICIPATION
What is Liquid Governance?
Liquid Governance is a mechanism that solves the problem of capital inefficiency created by traditional staking or governance participation.
When users commit tokens (like ALGO) to participate in blockchain governance, those tokens are typically locked for a period, making them illiquid (unusable) during that time.
Folks Finance solves this by introducing a Liquid Staking Derivative (LSD) token:
- Users commit their base token (e.g., ALGO) to governance through Folks Finance.
- In return, they receive a liquid derivative (e.g., gALGO or xALGO) at a 1:1 ratio.
- This derivative token represents the staked position and accrues governance rewards, but it remains liquid, meaning the user can then use it in other DeFi activities (like lending, trading, or collateral for a loan) without forfeiting their governance rewards.
How Folks Empowers Community Participation
Folks Finance uses its $FOLKS token and its Liquid Staking products to drive participation:
- Voting Power: $FOLKS token holders are empowered to vote on key protocol parameters (interest rates, risk models, new chain integrations).
- Staking Incentives: Users can stake $FOLKS to earn rewards, which aligns the interests of long-term holders with the success of the protocol.