Algofi's Mainnet launch completes the DeFi ecosystem trifecta (DEX, lending, and bridging) on Algorand
NEW YORK, Dec. 17, 2021 /PRNewswire/ -- First previewed on TestNet earlier this fall, Algofi's simple-to-use platform is now live on Algorand, enabling everyone from crypto-native traders to less tech-savvy retail users to earn interest, access leverage, and borrow against their cryptocurrency assets. With this launch, Algofi will also mint the native protocol stablecoin, AlgoStable (STBL).
Algofi's launch completes the trifecta of core protocols on Algorand, priming the blockchain's DeFi ecosystem for takeoff. The trifecta includes AlgoFi, Tinyman, an Algorand-based decentralized exchange (DEX), and Algomint, a digital assets minter that provides bridges between Algorand and other blockchain protocols.
"Our goal with Algofi is to develop projects that support real-world financial activity at scale–projects that institutions can ultimately use," said Algofi cofounders John Clarke and Owen Colegrove, who met while working together at Citadel. "We are excited about our launch today and believe it represents an important step toward building out a new, more inclusive and modern financial system."
A key component of this launch is the creation of the STBL coin, motivated by the desire to increase capital efficiency.
"When we looked at the DeFi market today, we observed that the separation of lending and borrowing and stablecoin minting creates capital inefficiency, and strongly argue that Maker and Compound do not need to exist as different protocols," said Owen Colegrove, co-founder at Algofi. "Algofi is bridging the gap by natively integrating a stablecoin with a lending protocol. This construction better approaches maximum market efficiency, and offers borrowers the lowest rates on stablecoins in any ecosystem."
Algofi will mint 1 trillion STBL at the inception of the Algofi protocol. Users of Algofi are able to deposit any of our supported assets and mint STBL against their collateral. Each STBL that is released into circulation will be fully backed by user collateral, just like any loan issued by the Algofi protocol.
Algofi will continue to roll out new functionality in the coming months, including a governance portal that will enable participants to vote on changes to the protocol, and liquidity incentives–including ALGO rewards to early users through the Algorand Foundation's Aeneas Liquidity Program.
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 XRP Capital, and Pillar VC. To learn more, visit www.algofi.org.