Polygon Grants $300k to Folks Finance for Crosschain Lending

Polygon has awarded Folks Finance a $300,000 grant to boost crosschain lending on its PoS network, as reported by Cointelegraph. This initiative, announced today, aims to unify liquidity and simplify borrowing across different blockchains. The grant is structured in three tranches, with the first $100,000 already live in Polygon (POL) tokens. This investment addresses a gap in Polygon's lending markets following Aave's reduced presence. Folks Finance's "hub-and-spoke" architecture allows users to deposit collateral on one chain and borrow on another seamlessly. The protocol uses Circle's CCTP, Chainlink's CCIP, and Wormhole for secure cross-chain transactions. According to Polygon Labs CEO Marc Borion, the grant supports new players in creating a better Web3 future. Folks Finance has also received grants from Avalanche and Arbitrum Foundations, signaling broad ecosystem support for crosschain lending. This collaboration aims to improve liquidity and user experience across Polygon and other blockchains.