Algofi and the Algorand Foundation have launched a $3 million liquidity mining initiative to promote DeFi adoption.

The liquidity program will distribute ALGO to early Algofi protocol users algorithmically.

Algofi, Algorand‘s first algorithmic money market and stablecoin, has teamed with the Algorand Foundation to distribute 2M ALGO through the Aeneas Liquidity Program in the first quarter of 2022. Beginning in January 2022, the platform’s users will receive ALGO rewards algorithmically when they borrow and lend ALGO, STBL, USDC, goBTC, and goETH.

ALGO is the Algorand blockchain’s native coin. ALGO is used to safeguard the blockchain, pay fees, and vote in governance. ALGO’s overall circulation is limited to 10 billion.

The Algorand Foundation’s Aeneas Program received $300M in funding from the Viridis Fund, which was unveiled in September to accelerate the expansion of the Algorand DeFi ecosystem. Its purpose is to bootstrap all three DeFi pillars at the same time: Algomint, Tinyman and Algofi.

The firm secured almost $20 million in total value in the week after its launch, exceeding the liquidity caps set at launch. Tinyman, a developing decentralized exchange with daily trade volume in excess of $5 million and $40 million in total value locked, is also part of the Algorand ecosystem.

Algomint, an Ethereum and Bitcoin bridge that just unveiled its own rewards program, and Yieldly, a no-loss lottery and staking contract platform, are two more ventures.

Owen Colegrove, Co-Founder of Algofi, said:

“The Algofi launch comes at a pivotal moment for the Algorand DeFi ecosystem. Algorand offers a scalable blockchain with no compromises, but they are just now entering the emerging world of DeFi. The launch of Algofi promotes liquidity in the ecosystem and is already having a measurable impact on trading activity. These are signs that the coming year is likely to be an explosive one for DeFi on Algorand.”

Algofi is a rapid, low-cost crypto lending market and stablecoin on the Algorand blockchain that enables widespread access to decentralized lending. Algofi intends to provide typical banking services like as savings accounts and credit cards, which will be powered by Algorand’s expanding DeFi platform.

Patrick

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