Algofi and Algorand Foundation has partnered to launch a $3 million liquidity incentive program that will distribute 2 million ALGO to the user of Algofi in Q1 of 2022.
Algofi announced the program in a blog post on Wednesday, December 29. According to the program, “starting in January 2022, users of Algofi will algorithmically earn ALGO rewards when they borrow and lend ALGO, STBL, USDC, goBTC, and goETH.”
Through partnership with the @AlgoFoundation Aeneas DeFi Fund, Algofi will be launching a rewards program of $3MM (2MM $ALGO).
Users who supply, borrow, and stake on the platform will be eligible to benefit from this initiative during Q1 2022. 🌊
Read 👉 https://t.co/JxclKjRAK8 pic.twitter.com/8TQXxSzfnB
— Algofi (@algofiorg) December 29, 2021
Algofi is a DeFi lending protocol that went live on the Algorand blockchain network on December 17. It is a simple to use platform that enables everyone from crypto-native traders to less tech-savvy retail users to earn interest, access leverage, and borrow against their cryptocurrency assets. Algofi also features a native stablecoin AlgoStable (STBL). Algofi will mint 1 trillion STBL at the inception of the Algofi protocol. Users of Algofi can deposit any protocol-supported assets and mint STBL against their collateral.
This $3 million liquidity incentive program has come on the back of Algorand Foundation’s Aeneas Liquidity Program, which is Phase II of its $300 million Viridis Fund. The Aeneas Liquidity Program’s goal is to bootstrap all three DeFi pillars simultaneously. These three pillars include “robust bridges for newcomers and migrants, AMM DEXs for aspiring traders and merchants, and a borrowing & lending architecture for capital efficiency and commerce.”
Three projects Algomint, Tinyman, and Algofi were selected under Aeneas Liquidity Program. The launch of Algofi brings the third DeFi pillar to Algorand by offering a lending and borrowing architecture.
The mission of the Aeneas program is to rapidly accelerate the growth of DeFi on Algorand in 2022 and beyond by bringing more users to the Algorand DeFi ecosystem. Algomint and Tinyman have already announced their incentive programs. Under their programs, users of Algomint and Tinyman will be able to take advantage of Algo rewards by bridging assets and then staking them in select liquidity pools.
In Algofi Liquidity Program, borrowers and lenders on Algofi will be similarly rewarded with $3 million worth of ALGO tokens (2M ALGO) for providing borrow supply and maintaining solid loan utilization on the protocol.
Owen Colegrove, Co-Founder of Algofi, commented:
“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.”