Algofi has created a vault product that allows users to participate in DeFi while governing the Algorand blockchain.
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.
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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 vault 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 DEX, as well as Tinyman, Pact, and Humble.
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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 Colegrove, Core Developer at Algofi
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