DeFi Lending Protocol Algofi to Launch on Algorand Mainnet in Q4, 2021

DeFi Lending Protocol Algofi to Launch on Algorand

DeFi lending protocol Algofi has announced that it will launch on Algorand mainnet somewhere in Q4, 2021, which will be a fast, low-cost, and decentralized lending market on the Algorand blockchain.

According to an announcement on Thursday, August 26, Algofi is currently live on Algorand mainnet and the team has plans to launch on mainnet by Q4 of this year. The protocol will be a DeFi lending marketplace that will allow users to earn interest on their crypto assets.

What is Algofi?

The project co-founded by John Clarke and Owen Colegrove who worked on Citadel’s fixed income team before leaving to ideate a new decentralized finance solution. According to the team, the idea took shape in Y Combinator’s summer 2021 accelerator in March 2021. The project was launched on Algorand testnet in August 2021 as Algofi.

Algofi is a simple-to-use platform allows everyone from crypto-native traders to less tech-savvy retail users to earn high-interest yield on their cryptocurrency. To lower the barrier to entry, this lending protocol will also feature seamless on-ramps for fiat currency into crypto on Algorand, allowing users to begin earning yield on Algofi almost instantly.

The team said that it had selected Algorand because of its developer tools, high TPS, low transaction fees, and its proven success in in real-world financial use cases. Algofi co-founder John Clarke commented:

“Building on Algorand enables < $0.01 transactions compared to ~$15 or more on other incumbent networks. High costs and slow transactions make decentralized lending markets inaccessible to the majority of potential users, so going with a Layer-1 proof of stake protocol like Algorand just made sense. We’re also excited to be a part of Algorand’s burgeoning DeFi ecosystem alongside the likes of Yieldly, Tinyman and Algodex, where we already see a lot of synergies.”

Algorand Foundation Launches New Accelerator Program

Algorand now has a large ecosystem that has more than 500 global organizations leveraging its technology. To bring more state-of-the-art projects in its system, Algorand Foundation, the Singapore-based organization taking care of the Algorand blockchain network, has recently launched Algorand Miami Accelerator program for Miami and LATAM regions with Borderless Capital and Rokk3r to “back and foster projects to help them build, grow and push for financial innovation on the entire Algorand platform.”

In this program, the selected projects will go through a 10-week acceleration program with a $20,000 grant from Algorand Foundation and $15,000 investment from Borderless Capital in return for 3% equity. Promising project will receive follow-up investments ranging from $250,000 to $1,000,000.

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