Algorand Foundation Launches $300 Million Fund to Boost DeFi Innovation
The Algorand Foundation announced a 150 million ALGO DeFi fund (worth approximately $300 million). It will be facilitated through a project dubbed the Viridis DeFi Program. Based on the announcement, the Algorand Foundation will support DeFi innovation on their blockchain network.
The Algorand Foundation is known for its zeal in working towards the global promise of blockchain technology. The organization does this by leveraging open source software and Algorand protocol in the crypto ecosystem.
This fund comes at the right moment in the crypto sphere when rapid innovation is the norm. It can be put to good use to bolster the advancement of technologies such as decentralized exchanges, synthetic asset applications, money markets, NFT platforms, and options markets. All these need to run on the best blockchain network with the most advanced features to help secure the future of decentralized finance.
The Algorand Foundation
Algorand was founded in 2017 as a network dedicated to handling a high transaction volume, supporting uses ranging from DeFi to governments to financial institutions. The main aim is to create a smooth transition to FutureFi or the future of finance. From its inception to date, Algorand created its own unique niche in the crypto ecosystem as the go-to network for almost a thousand global organizations seeking the effortless exchange of value and the seamless development of next-gen financial protocols and products.
Sean Lee, the CEO of the Algorand Foundation, had this to say about the announcement:
The Algorand Foundation is excited to launch this funding program to help accelerate the adoption of DeFi across the Algorand Ecosystem. Creating the right infrastructure, application ecosystem, and liquidity will be key to ensuring that DeFi on Algorand is regarded as the world’s most energy-efficient, scalable, and low-cost DeFi ecosystem.
Funds Allocation
The organization re-allocated 50 million ALGO by the AlgoGrant fund for the exclusive development of decentralized applications (DApps) and DeFi infrastructure. The AlgoGrant fund has other SupaGrants that support the creation of crucial DeFi protocols, like price oracles and cross-chain bridges.
The project set aside the $5 million Bridge SupaGrant and the $5 million Price Oracle SupaGrant. The former acts as the building block for proposals to develop bi-directional bridges from Ethereum & other chains. With this realization and ported onto the Algorand network, DApps will have better access to market data to manage divergent smart contract functions.
The second SupaGrant will support proposals for the oracle networks’ integration associated with price feeds. The remaining amount from the fund will be deployed towards supporting broader application development across the growing DeFi sphere. Those interested in applying can do so on the organization’s Price Oracle SupaGrant Portal.
Liquidity is the backbone of the DeFi movement and supports DApp adoption. The Algorand Foundation has allocated 100 million ALGO towards providing and supporting liquidity incentives within the Algorand DeFi system. This allocation ensures DeFi projects can access liquidity seamlessly, coupled with incentivizing liquidity providers who fuel DeFi on the Algorand Network.
Projects have already started reaching out to the Algorand Foundation. For instance, tinyman, the first automated market maker DEX, proposed inclusion into the program. Tinyman’s goal is to ensure they have the required liquidity support during launch.
This dedicated fund ensures the network’s DeFi infrastructure, Liquidity, and DApps are bolstered so developers and innovators can immediately impact the ecosystem. Additionally, Algorand made its name in the crypto ecosystem as a leading carbon negative, sustainable, and high-performance crypto blockchain, making it an excellent choice for DeFi aficionados.
Visit https://algorand.foundation/news/viridis if you want to know more about the Viridis DeFi program.
