Algofi and Algorand Foundation Partner to Launch $3M Liquidity Mining Initiative

by Guillermo Jimenez
7 ways to make with crypto

Algofi and Algorand Foundation Partner to Launch $3M Liquidity Mining Initiative

The team behind Algorand’s “first algorithmic money market and stablecoin” has joined forces with the Algorand Foundation to give away 2M $ALGO tokens in Q1 2022 via the Aeneas Liquidity Program.

As Binance Research explained in a research report published in June 2019, Algorand is “a permissionless, pure proof of stake blockchain that ensures full participation, protection and speed within a truly decentralized network.”

Algorand’s aim is “to remove technical barriers that have undermined mainstream blockchain adoption: decentralization, scale, and security.”

Algorand was built by a team of “internationally recognized researchers, mathematicians, cryptographers, and economists along with proven business leaders from global technology companies.” The executive team consists of Silvio Micali (Founder), Steve Kokinos (CEO), and W. Sean Ford (COO).

Algofi, which was launched on December 17, is “a decentralized lending protocol and stablecoin built on the Algorand blockchain.” In a Medium blog post published on Wesnesday (December 29), the Algofi team said that “starting in January 2022, users of Algofi will algorithmically earn ALGO rewards when they borrow and lend ALGO, STBL, USDC, goBTC, and goETH.”

Here is what this blog post said about $ALOGO:

“ALGO is the native cryptocurrency of the Algorand blockchain. ALGO is used to secure the blockchain, pay fees, and vote in governance. The total circulation of ALGO is capped at 10bn.”

It went on to say that “Algorand Foundation’s Aeneas Program was seeded with capital from the $300M Viridis Fund announced in September to accelerate the growth of the Algorand DeFi ecosystem” and that its goal is “to bootstrap all three DeFi pillars simultaneously”:

  1. Robust bridges for newcomers and migrants (Algomint).
  2. AMM DEXs for aspiring traders and merchants (Tinyman).
  3. A borrowing & lending architecture for capital efficiency (Algofi).

Owen Colegrove, Co-Founder of Algofi, had this to say:

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.

On 30 November 2021,

November 30), Miami-based Algorand-focused venture capital firm Borderless Capital announced via a press release the launch of its $500 million “Borderless ALGO Fund II”.

Borderless Capital calls itself “a blockchain VC firm and a modern financial institution investing capital and co-building financial products with our portfolio companies that accelerates access, bootstraps adoption, and creates value globally through the Algorand Borderless Economy.”

Borderless Capital’s new fund will be “investing in digital assets powering the next generation of decentralized applications on top of Algorand, including opportunities to disrupt the creators economy with NFTs and accelerating the growth of the capital that participates in the ALGO DeFi ecosystem through liquidity mining, lending, borrowing and yield farming.”

In a video released on 10 August 2021, the pusedoymous host of the popular YouTube series Coin Bureau told his YouTube channel’s subscribers:

  • Although he does not have any $LUNA holdings at the moment, he is “seriously considering” putting money into $LUNA.
  • Terra’s TerraUSD (UST) stablecoin is currently “the fastest growing stablecoin” with a market cap that has grown ten-fold so far this year.
  • $LUNA is used for collateralising UST, with $1 worth of $LUNA being “always convertible to 1 UST.”
  • One of the main reasons for UST’s popularity is the huge popularity of the the following two Terra-powered applications: Mirror and Anchor.
  • Demand for UST drives demand for $LUNA and since the latter is burned every time that the former is minted, this has a “deflationary effect”.

Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

Image Credit

Featured Image by “nosheep” via Pixabay

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