The deposit operation allow the user to lend their liquidity and/or collateralize it for opening a loan.
Digital assets minted on the Algorand blockchain are known as Algorand Standard Assets (ASAs). All of the ASAs supported by Folks Finance can be deposited into the protocol. When a user deposits their crypto-assets/digital-assets, the amount of tokens deposited will be collected in the relative liquidity pool. The user receives an amount (algorithmically calculated) of fToken that can be used to withdraw the deposited assets, or lock them as collateral for receiving a loan. After depositing, the user immediately begins to earn interest on the deposited asset, according to the interest rate calculated for the pool. The amount deposited by the user is held in a smart contract until a withdrawal transaction occurs.
To interact correctly with the protocol, it is highly recommended to always maintain the minimum ALGO balance required. Please check this link to learn more about the costs associated with performing transactions on the Algorand blockchain.
- 1.Click on the Deposit button in the navigation bar of the web app.
- 2.In the Available to Deposit section, scroll through the several assets supported by the protocol or find them through the search asset function. Select the one with the percentage rate that suits you best.
- 3.By clicking on the desired asset, a dedicated widget appears. Type in or use the slide bar to specify the amount of the tokens you want to deposit and click Continue.
- 4.If this is the first time you have deposited this token, you will be asked to opt-in to the fToken you will receive in exchange for your deposit. Thus, click on Opt-in.
- 5.Confirm the deposit.
- 6.You will receive a message indicating success if the process has been completed properly.
If you are using Pera Wallet, please, remember to confirm the operations from your smartphone.
All of the tokens supported by the Folks Finance protocol are ASAs (Algorand Standard Assets). As required by the Algorand blockchain, an opt-in operation is required before acquiring and utilizing these crypto-assets. The Opt-in procedure must be performed once per token if the asset has not previously been held in the wallet. Folks Finance will notify users if the opt-in procedure has not been performed and support them through the opt-in process. Once all of the requirements are fulfilled, you are ready to interact with the protocol.
The Folks Finance Deposit Token: fToken, is the asset distributed to users following their deposit of each asset (i.e. fALGO, fUSDC) and represents asset ownership. The fTokens are instrumental to the system's operations and are minted by the protocol itself. With use of the fToken, users can withdraw the deposited asset or use it as collateral to obtain a loan.
Sending fToken to other addresses will also transfer the right to withdraw your deposit to those other addresses. Only transfer your fToken if you know the recipient account and accept the risks involved.