Folks Finance launched their Testnet, and by utilizing it and completing quests on their Galaxy platform, you could earn a potential airdrop. Here is the step-by-step guide for you.

Disclaimer: All opinions are personal opinions and NOT FINANCIAL advice.

What is Folks Finance?

Folks Finance focuses on capital markets and operates on the Algorand blockchain. They recently raised $3 million in Seed Funding Round, led by Borderless Capital, with contributions from companies like Jump Crypto, ParaFi Capital, Coinbase Ventures, OKX Blockdream Ventures, Genesis Capital, and the Algorand Foundation. While the funding might not be substantial, the Testnet airdrop tasks come at no financial cost and are relatively straightforward.

Why participate the Folks Finance Testnet Airdrop?

1. No Cost Involved: Joining the airdrop does not require any financial investment, making it accessible to everyone without the risk of financial loss.
2. Simplicity of Tasks: The tasks required to participate are straightforward and easy to complete, ensuring that even those new to the platform can engage without difficulty.
3. Experience with Folks Finance Testnet: Engaging with the Folks Finance Testnet allows users to familiarize themselves with the platform’s DeFi tools, such as lending, borrowing, and trading digital assets.
4. Potential Future Rewards: While the immediate reward size might not be substantial, participating in Testnet airdrops can sometimes lead to future opportunities as the platform grows and develops.

However, it is important to manage expectations regarding the size of the rewards, as they are not expected to be large.

Step-by-Step Guide to Participate

Below are the steps to interact with the Folks Finance Testnet:

1. Create an Account

• Connect Your Wallet: Head to the Testnet site and connect your wallet.
• Claim Testnet Tokens: Use the Chainlink faucet or other provided faucets to claim Testnet tokens.

• Create an Account: Go to Folks Testnet dAPP, click on the profile icon in the top-right corner to create an account.
  *You will need Testnet tokens to do this.
• Create Accounts on Multiple Chains: Folks Finance Testnet utilizes multiple chains, so you will need to create accounts on all Avalanche Fuji, Sepolia and Base Sepolia chains. Switch networks as needed.

2. Deposit and Loans

• Deposit Testnet Assets: Once your accounts are created, you can start depositing Testnet assets like AVAX or ETH.
  *Note that you need to switch chains in your wallet to deposit assets on different chains.

• Create and Manage Loans: Once you deposit your assets, you can create loans using those assets as collateral. Make sure to wait for the transactions to be successful.

• Borrow Assets: Use the collateralized assets to borrow additional Testnet assets and manage your positions carefully to avoid liquidation.

Important Dates and Tasks

July 24 at 2 PM UTC, there’s a quest on their Galaxy platform that involves joining the Li-Fi Jumper Discord and participating in an AMA for at least five minutes. If you miss this, don’t worry—more quests will come.

Another important quest is the Subway Tester quest, which relates to the Testnet. This quest started on July 23 and will run until August 31. As of now, only 8707 tokens have been minted, so there’s still a good opportunity to participate.

Additional Tips

• Buggy Testnet: The Folks Finance Testnet is new and may have bugs. Be patient and try different methods if one approach doesn’t work.
• Monitor Liquidation Margins: Even though these are Testnet assets and hold no real value, it’s crucial to monitor your liquidation margin, especially if your APY is negative.
• Repeat the Cycle: You don’t need to interact with the platform daily, but you can complete the cycle of depositing, borrowing, and managing loans to see if it’s worth any potential airdrops.