Introduction

• The dashboard takes a look at borrows on Folks.Finance a borrowing and lending protocol built on Algorand.
• The goal is to get an understanding of how what assets users most want to borrow, how often borrows are happening, and the average collateral ratio between the collateral offered and the asset that is borrowed.
• Website/Feature: link

The dashboard will have the following primary analysis sections:

• I Daily Borrow Activity
• II. Daily Borrow Volumes for each borrowed asset
• III. CDP Ratios and their distribution for each borrowed asset

Methodology

• Borrow Process: The process is as follows: a wallet will first commit an escrow transaction converting ALGO to fALGO. Then the wallet will place the fAlgo up as collateral and borrow the asset in a separate tx group. The dashboard focuses just on the BORROW aspect.

• Identifying Transaction groups:

  • The tx_group_ids can be identified using the application call transactions being made.
  • Filter: TRY_BASE64_DECODE_STRING(tx_message :txn :apaa [0] :: STRING) = ‘b’
  • The borrowing app_id’s will be the assets poolAppId https://docs.folks.finance/developer/contracts . Though, this analysis doesn't really involve individual app_id understanding

• Transaction Examples:

  • Example1
  • Example2

• Docs:

  • Borrow Documentation
  • App_IDs/Contract Addresses

III. CDP Ratios and their distribution for each borrowed asset

II. Daily Borrow Volumes for each borrowed asset

I. Daily Borrow Activity

Prerequisites:

• Collateral Debt Ratio (CDP): The term is defined as the USD value of the provided collateral asset DIVIDED by the USD value of the borrowed debt asset
• Note: CDPs>10 have been capped to 10 to maintain chart/vizualization sanity.

Double-Click any one asset name in the legend (right of the chart) to focus on that asset. Double Click again to return.

• We see an initial high activity period in April which lasts around 2-3 weeks but afterward, the activity becomes muted.
• This could also be in turn due to the overall Crypto Market/sentiment turning very bearish.

• The borrowing volumes so far seem to have peaked by Mid-April.
• Despite borrow transactions increasing toward Mid-May, the volumes have remained low!
• Folks.Finance had been running multiple incentive programs and partnerships across the Algorand DeFi Participants such as Tinyman/Algorand Foundation/Pact Fi/Algomint to increase overall TVL and activity on their platform and Algorand overall.
• Further details of the incentives and programs can be found on their Twitter

• Now that we know the average CDP for each borrowed asset, let's look at the distribution of positions for each borrowed asset against the average!

Conclusions:

• We've analyzed the day-to-day borrowing activity in terms of transactions and the volume being utilized.

• We've also deep-dived into the CDP ratio health of the borrow positions opened on the platform.