Algorand Foundation Launches $300 Million Fund to Support DeFi Innovation
Algorand Foundation, an organization dedicated to realizing the global promise of blockchain technology by leveraging the Algorand protocol and open source software, today announced the Viridis DeFi program, a $ 150 million Algo fund (valued at around US $ 300 million today) to support DeFi innovation on the Algorand network.
The fund will fuel the growth of decentralized exchanges, money markets, options markets, synthetic asset applications and NFT platforms, all running on the high-speed Algorand blockchain.
“The Algorand Foundation is delighted to launch this funding program to help accelerate the adoption of DeFi in the Algorand ecosystem. Creating the right infrastructure, application ecosystem and liquidity will be key to ensuring DeFi on Algorand is considered the most energy efficient, scalable and cost effective DeFi ecosystem in the world, ”said Sean Lee , CEO of the Algorand Foundation in a press release. .
Development on Algorand
Founded in 2017, Algorand was designed from the ground up to handle the volume of transactions needed by DeFi, financial institutions and governments for a smooth transition to the future of finance, or FutureFi.
Its underlying blockchain enables frictionless value exchange and the simple creation of next-generation financial products and protocols.
50 million ALGO, which has been reallocated from the AlgoGrant fund, will exclusively support the development of DeFi infrastructure and applications (DApps). Within this framework, the DeFi “SupaGrants” were designed to support the creation of critical DeFi infrastructures such as inter-chain bridges and price oracles.
The first $ 5 million SupaGrant will be a call for proposals to build two-way bridges from Ethereum and other chains. Once ported to Algorand, dApps need access to market data to handle a variety of smart contract functions.
The second $ 5 million SupaGrant will solicit proposals for the integration of Oracle networks with associated price streams. The balance of this fund will support the continued development of applications in this booming DeFi ecosystem.
Since liquidity is a fundamental driver of DeFi and DApp adoption, the Algorand Foundation is allocating a 100 million ALGO fund (worth around US $ 200 million today) to support and provide liquidity incentives to the Algorand DeFi ecosystem.
In doing so, the Algorand Foundation ensures that quality DeFi projects can easily access liquidity while providing incentives for liquidity providers to feed DeFi on Algorand. Many projects, such as the first DEX automated market maker Tinyman, have already engaged with the Foundation to ensure that they will have the appropriate liquidity support required at launch.
By supporting DeFi infrastructure, DApps and liquidity with this dedicated fund, innovators and developers will be able to have an immediate impact on Algorand’s DeFi ecosystem. And they’ll do it on the most sustainable, carbon-negative, and crypto-performing blockchain today.
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