Folks Finance Fuels xChain V2 with $10M Incentives, Targets $1B TVL

Folks Finance xChain V2 Upgrade Announcement

Folks Finance, a crosschain lending protocol backed by major crypto investors, announced its xChain V2 upgrade on December 10, 2025. The upgrade, expected in H1 2026, will be supported by $10 million in incentives through the allocation of 1 million FOLKS tokens. This initiative aims to scale crosschain DeFi into mainstream use, building on the success of the FOLKS token and the first iteration of xChain.

The xChain V2 is designed to simplify crosschain DeFi by removing traditional complexities and introducing new vault-based loans. This allows users to execute curated crosschain yield strategies from a single interface. The upgrade also supports both EVM and non-EVM ecosystems, broadening the accessibility of the platform.

To further enhance user experience, xChain V2 will integrate with the upcoming Folks Mobile app, enabling debit-card-based borrowing. This feature allows users to borrow against their collateral and spend the borrowed balance in the real world. The goal is to bridge the gap between onchain DeFi tools and everyday financial activities.

The V2 upgrade positions Folks Finance as a leader in crosschain lending, leveraging its experience across eight blockchain networks. The protocol has operated on mainnet for over a year, and the new version aims to increase total value locked (TVL) toward a $1 billion target. The support from venture capital firms like Coinbase Ventures, Jump, ParaFi, and Borderless Capital strengthens the platform's credibility and growth potential.

The $10 million incentive program will fuel unified crosschain pools and efficient strategy vaults, rewarding early adopters. This approach not only encourages user participation but also fosters liquidity across multiple chains. The FOLKS token's utility will also expand with the V2 launch, offering more value propositions for token holders.

The development of xChain V2 aligns with broader trends in DeFi, where interoperability and user-friendly design are becoming increasingly critical. By supporting both EVM and non-EVM ecosystems, Folks Finance ensures its platform is accessible to a wider audience, reducing the technical barriers that have previously limited crosschain DeFi adoption.

Crosschain DeFi Expansion and Future Plans

The launch of xChain V2 marks a significant step in Folks Finance's roadmap to mainstream adoption. The integration with the Folks Mobile app is a strategic move to bring DeFi into daily financial activities, bridging the gap between onchain and offchain use. Users can now access the benefits of DeFi through a familiar interface, potentially attracting a broader user base.

The FOLKS token is central to the platform's ecosystem, with its utility expanding alongside the V2 launch. Further details on the token's role in the upgraded system will be shared as development progresses, ensuring transparency for users and investors alike.

With over a year of experience on mainnet and a strong foundation in crosschain lending, Folks Finance is well-positioned to deliver one of the most advanced upgrades in the sector. The company's extensive market experience across eight chains demonstrates its ability to navigate the complexities of crosschain operations and scale effectively.

As xChain V2 approaches launch, more updates and technical details will be shared through official channels. This transparency is essential in building trust and encouraging user adoption. The company's commitment to innovation and user experience positions it as a key player in the evolving DeFi landscape.