Funding, Technology, Lending, Polygon

Blockchain platform Polygon grants lending protocol Folks Finance $300,000 to accelerate crosschain lending innovation.

Decentralized lending has long suffered from fragmented liquidity, forcing users to move assets across risky bridges or rely on synthetic substitutes. Folks Finance is a decentralized lending protocol addressing this challenge with an innovative “hub-and-spoke” architecture that unifies liquidity while allowing seamless access from multiple blockchains.

The protocol recently received a $300,000 grant from blockchain platform Polygon to accelerate Folks’ crosschain lending deployment on Polygon’s proof-of-stake (PoS) network.

Support for crosschain lending

The grant, structured in three tranches, marks a strategic moment for Polygon’s lending landscape. With Aave recently scaling back its presence on Polygon PoS, a significant gap has opened in lending markets.

Polygon’s investment is aimed directly at filling this gap, signaling clear support for Folks Finance’s crosschain solution. The first tranche of the grant — $100,000 in Polygon (POL) tokens — is already live on the network.

For users, this development means improved liquidity, streamlined user experiences and a safer way to borrow and lend across different blockchains without cumbersome overhead. Users who participate also earn “Folks Points,” a specialized loyalty system designed to track and reward meaningful engagement within the protocol.

Seamless borrowing across multiple chains

Unlike traditional multichain deployments, Folks Finance doesn’t silo liquidity or force users into cumbersome bridges. Instead, liquidity from multiple chains is pooled together into a single hub, allowing users to deposit collateral on one chain and seamlessly borrow on another.

For example, a user can supply USDC (USDC) on Arbitrum, watch that deposit appear instantly in the main pool on Polygon, then open a wETH loan on Avalanche without touching a bridge.

Behind the scenes, a trio of messaging rails — Circle’s Cross-Chain Transfer Protocol (CCTP), Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Wormhole — act as encrypted couriers, relaying signed instructions while keeping tokens native to their chain of origin. Think of them as secure shipping lanes; the user sees only a single balance sheet.

Commenting on the collaboration, “The grant signals a strong alignment between Folks and Polygon,” said Benedetto Biondi, CEO of Folks Finance, adding, “We are eager to start this collaboration and to accelerate our growth with the Polygon community.”

Meanwhile, Marc Borion, CEO of Polygon Labs, said:

“The playing field for lending on Polygon PoS is opening up, and I’m happy to see teams step in to thrive. New players who will create a better Web3 future are emerging.”

Project receives backing from broader industry

The $300,000 grant is not the only backing Folks Finance has secured. The protocol has also received grants from the Avalanche and Arbitrum Foundations, reflecting a growing alignment across major ecosystems to support the rise of crosschain lending.

With support from multiple ecosystems, Folks Finance has the potential to drive fresh momentum in crosschain lending and offer new opportunities to users across Polygon and beyond.

Learn more about Folks Finance

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