Folks Finance Lending

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

Folks Finance Lending is a non-custodial lending market whose documented asset, escrow, transaction-fee and liquidation perimeter settles on Algorand. The DefiLlama API read on 2026-08-15 reported about $20.1M of supplied TVL and $10.3M borrowed, only on Algorand. Size is not the deciding rejection: Algorand is outside the registry’s reviewed settlement-chain set, so the shared rejected-chain dossier controls before protocol-level underwriting can begin.

Kill criteria: the events that revoke this verdict
• Algorand passes independent review and is admitted to the supported settlement-chain set, and Folks Finance Lending remains live there

The research file

Mechanism and settlement applicability

Folks Finance documents an Algorand application in which users deposit assets, use deposits as collateral, borrow, repay and withdraw. Supported tokens are Algorand Standard Assets, loans use Algorand escrow accounts, and every action incurs an Algorand transaction fee. Those facts establish that the lending claims and exits depend on Algorand settlement rather than merely a front-end label.

Current observation

The current Folks Finance application continued to expose Deposit, Borrow and Markets alongside Algorand-specific xALGO. The DefiLlama protocol API read on 2026-08-15 reported approximately $20.1M supplied and $10.3M borrowed, with Algorand as the only chain. The adapter figures are survey observations, not independent reserve or liquidity assurance.

Control and exit applicability

Folks describes the protocol as non-custodial, but collateral remains in an Algorand escrow until withdrawal and can be liquidated when the loan reaches liquidation margin, without a grace period. Repayment and withdrawal therefore require functioning Algorand contracts, assets and transaction execution. Protocol controls cannot cure an unreviewed settlement venue.

Why the class rule decides

The shared v1 rejected-chain dossier controls because every currently evidenced lending and exit path settles on Algorand, which is not in the reviewed chain set. Reopen only after Algorand is independently reviewed and admitted and Folks Finance remains live there; then perform an individual lending review covering governance and upgrades, markets and oracles, collateral and liquidation, audits and incidents, liquidity, fees and stressed exits.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• Folks Finance Docs — Algorand application · primary · accessed 2026-08-15
  Supports: Algorand application, lending, borrowing, collateral, non-custodial mechanism
• Folks Finance Docs — FAQ · primary · accessed 2026-08-15
  Supports: Algorand Standard Assets, escrow, withdrawal, liquidation margin, no grace period
• Folks Finance — current application · primary · accessed 2026-08-15
  Supports: current product, deposit, borrow, markets, xALGO
• DefiLlama — Folks Finance Lending survey record · secondary · accessed 2026-08-15
  Supports: current TVL, current borrowing, Algorand-only perimeter, survey category

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.