Folks Finance TVL

Q109. Calculate the TVL on Folks Finance- broken out by deposited and borrowed.

Use their markets/total deposited page(https://app.folks.finance/markets), their homepage(https://folks.finance/), and contracts(https://docs.folks.finance/developer/contracts) to guide your analysis. Note any interesting findings about major TVL shifts or anything else you find/

Introduction

Folks Finance is the leading protocol serving capital markets, built on the Algorand blockchain. The protocol offers services of borrowing and lending in a decentralized and permissionless way. Through the lending operations, Folks users can lend their crypto-asset liquidity, and start earning a passive, economic return on their assets immediately. Through the borrowing operations, the users can request crypto loans by locking deposited funds as collateral.

On Folks finance, users can

Deposit and earn
Algo liquid governance
Lock and earn
Stake rewards token
Borrow
Aggregate rewards

Information regarding analysis

In this article, we Calculate the TVL on Folks Finance- broken out by deposited and borrowed.

Throughout the article we consider the timeline of 2 months in order to identify trends seen only in the last 2 months in the wake of market volatility.

We identify deposits and borrows by using flipside_prod_db.algorand.application_call_transaction where

TRY_BASE64_DECODE_STRING(tx_message :txn :apaa [0] :: STRING) = 'b' is b as borrows and

TRY_BASE64_DECODE_STRING(tx_message :txn :apaa [0] :: STRING) = 'd’ as deposits

Analysis

We first analyse the TVL with respect to only deposits and borrows.

We can see that a majority of the TVL is composed of deposits, close to 85 % while only 15% in borrow.

On looking at the deposits and borrows over time, we notice that there is no significant trend in the graph. The only notiecable trend is the increase of borrows in the latter days.

Analysis of borrows

We now analyse the borrowers and understand which the trend of borrows as well as the top coins borrowed.

We notice that most of the borrows are stablecoins with USDt and USDC making up around 90 % of the borrows. When looking at the borrowing over time chart, we notice that a huge spike appears on June 14 2022. This could be due to the market volatility surrounding Feds policy.

Analysis of deposits

We now analyse the deposits and understand the trend of deposits as well as the top coins deposited.

We notice that there ais a healthy mix of coins. With Folks algo , reward token that is deposited the highest follwed by USDC.

On inspecting the deposits over time graph, we notice that there has been a considerable increase in the deposits in the past few days.

Conclusion