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

Mars Finance News: Polygon provides a $300,000 grant to decentralized lending protocol Folks Finance, supporting its cross-chain lending solution deployment on the Polygon PoS network, aiming to integrate liquidity and simplify multi-chain lending experience. According to the official introduction, Folks Finance adopts an innovative "hub-and-spoke" architecture, allowing users to collateralize assets on one chain and seamlessly borrow on another. The solution operates through three cross-chain communication protocols: Circle CCTP, Chainlink CCIP, and Wormhole, avoiding asset security and operational complexity issues associated with traditional bridges. The grant will be distributed in three installments, with the first $100,000 equivalent in MATIC tokens already disbursed. Polygon stated that after Aave reduced its deployment on the PoS chain, a lending market gap emerged, and this grant to Folks Finance is a crucial measure to fill that void. Folks Finance has also launched a "Folks Points" incentive system to encourage user behavior within the protocol. In addition to Polygon, Folks Finance previously received support from Avalanche and Arbitrum foundations. (Cointelegraph)