RISKS, REWRADS & OPPORTUNITIES
Risks for Users- Smart Contract Risk: As with all DeFi protocols, bugs or vulnerabilities in the smart contract code (especially in the complex cross-chain contracts) could lead to loss of funds.
- Interoperability Risk: Reliance on cross-chain messaging layers (CCIP, Wormhole) introduces counterparty risk if those layers face a security breach.
- Liquidation Risk: Borrowers face liquidation if the value of their collateral drops below the required margin threshold.
Rewards for Users
- Maximized Yield: Users earn yield from lending plus governance rewards from their liquid staking derivatives (LSDs) like gALGO.
- Cross-Chain Efficiency: Ability to manage assets and access lending/borrowing opportunities across multiple major chains from a single, unified interface.
- Token Incentives: Earning $FOLKS tokens for lending, borrowing, and providing liquidity.