Algofi has created a vault product that allows users to participate in DeFi while governing the Algorand blockchain.
NEW YORK, March 31, 2022 /PRNewswire/ — Algofi announced the launch of their Algorand Foundation Governance Vault on the Algorand blockchain. With the Algofi Vault users can simultaneously participate in Algorand governance and Decentralized Finance (DeFi). To participate in Algorand Governance, users will have to opt in via the Vault by April 14th, 12:00pm EST.
Algofi is a decentralized lending protocol, exchange, and stablecoin built on the Algorand blockchain. Algorand, with its native token ALGO, is the world’s most decentralized, scalable, and secure blockchain infrastructure. The Algorand Community Governance enables all ALGO holders to participate in the decision making process on the growth and development of the Algorand ecosystem. In Algorand’s last governance period over 37k unique wallets participated and staked over 2.8B ALGOs in one of the largest examples of decentralized governance to date.
The Algofi will enable ALGOs committed to governance to be used as collateral for lending and borrowing, thereby unlocking $2.7B of liquidity for the Algorand DeFi ecosystem. Users can borrow ALGO, STBL, USDC, goBTC, and goETH against this collateral. From there users can trade on the Algofi DEXmore tinyman, Pactand Humble.
The value proposition for using the Algofi vault is compelling. In the last governance period, Algorand governors earned 11% APY for their participation. Moreover, the ongoing Aeneas Liquidity Program subsidizes the cost of borrowing assets on Algofi and further incentivizes participation across the Algorand ecosystem. In recent months, the Aeneas program has contributed to over 250% growth in ecosystem TVL to roughly $185mm.
“Algofi fully expects the release of the vault product to supercharge Total Value Locked (TVL) on the Algorand blockchain. Users will now be able to enjoy DeFi while deciding on the future of the Algorand network.” – Owen ColegroveCore Developer at Algofi
Algofi is the DeFi hub of the Algorand blockchain. Algofi offers a lending protocol, automated market maker, and stablecoin integrated in one seamless user experience. Algofi is planning to offer traditional banking services like savings accounts and credit cards that will be powered by Algorand’s growing DeFi ecosystem. Investors include Union Square Ventures, Arrington XRP Capital, and Pillar VC. To learn more, visit www.algofi.org.
Algorand is building the technology to power the Future of Finance (FutureFi), the convergence of traditional and decentralized models into a unified system that is inclusive, frictionless, and secure. Founded by Turing Award-winning cryptographer Silvio Micali, Algorand developed a blockchain infrastructure that offers the interoperability and capacity to handle the volume of transactions needed for defi, financial institutions and governments to smoothly transition into FutureFi. The technology of choice for more than 500 global organizations, Algorand is enabling the simple creation of next generation financial products, protocols and exchange of value. For more information, visit www.algorand.com.