Algofi and Algorand Foundation Launch A $3M Liquidity Mining Initiative

Published on: 30.12.2021

Algofi, Algorand’s first algorithmic money market and stablecoin, has partnered with the Algorand Foundation to distribute 2M ALGO in Q1 2022 through the Aeneas Liquidity Program. Starting in January 2022, users of Algofi will algorithmically earn ALGO rewards when they borrow and lend ALGO, STBL, USDC, goBTC, and goETH.

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.

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. Its goal is singular yet ambitious: to bootstrap all three DeFi pillars simultaneously:

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

“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.” — Owen Colegrove, Co-Founder of Algofi.

Algofi garnered over $20M in total value locked in the week following their launch, reaching caps on liquidity placed at launch. The Algorand ecosystem also includes a growing decentralized exchange, Tinyman, which sees daily trading volume in excess of $5M and has $40M of total value locked.

ABOUT Algofi
Algofi is a fast, low-cost crypto lending market and stablecoin on the Algorand blockchain that makes decentralized lending broadly accessible. 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 Capital, and Pillar VC