How Folks Finance is Revamping the Account Infrastructure for Cross-Chain DeFi

Unified Global Account Model: Folks Finance addresses cross-chain DeFi inefficiencies by implementing a unified global account model, centralizing risk calculation and account logic on Algorand to enhance capital efficiency across multiple chains.

Separation of Concerns: The protocol distinguishes between backend execution and frontend user interaction, allowing users to manage a single global account rather than fragmented accounts across different chains, which improves cross-chain lending capabilities.

Hub-Based Architecture: By utilizing a hub-based architecture, Folks Finance centralizes account state and risk logic, enabling users to deposit collateral on one chain and borrow on another without needing to move assets, thus simplifying cross-chain operations.

Long-Term Strategy Shift: The protocol's evolution from lending to cross-chain asset management reflects a strategic focus on creating a more resilient and efficient DeFi infrastructure, emphasizing the importance of unified account systems over traditional asset movement.