What is Algofi? Algofi is the first decentralized Lending & Borrowing project built on Algorand’s ecosystem. Algofi allows users in the Algorand ecosystem to mortgage crypto assets to borrow stablecoins quickly with the lowest cost and most convenience.
To understand more about Algofi and Lending & Borrowing, people can read some of the articles below:
- What is Helio Protocol (HELIO)? Overview of Helio Protocol Cryptocurrency
- MakerDAO (MKR) Operating Model
- DeFi Panorama 101 | Episode 3: What is Lending & Borrowing? The Essential Puzzle Piece in DeFi
What is Algofi?
Overview of Algofi
Algofi is a CDP platform built and developed on the Alogrand ecosystem. Algofi is also the first Lending & Borrowing project built on the Algorand ecosystem with a crypto asset collateral mechanism for lending and borrowing at very low costs while making decentralized lending accessible. widely. Algofi’s operating model is similar to Maker DAO, Helio Protocol…
In addition, Algofi also provides crypto trading products and helps users make profits from providing liquidity for ALGO – BANK, USDT – USDC pairs… After Algofi was born, it officially contributed to the process. The process completes the core protocol trio on Algorand and this protocol is considered the DeFi heart of Algorand.
Mechanism of action of Algofi
Algofi’s operating mechanism takes place in a number of basic steps as follows:
- Step 1: Users deposit assets into the Algofi protocol. Depositable assets are stablecoins or BTC, ETH
- Step 2: Users can lend Algo, goBTC or goETH as collateral, then borrow USDC or STBL (STBL is converted 1-1 with USDC) to earn profit through lending interest
- Step 3: Users can use USDC or STBL in the Earn section of the Algofi protocol
Algofi includes key products to earn profits for asset holders in the Earn protocol:
- Lending & Borrowing: The community can seek profits by lending USDC or USDT through lending interest and receive rewards in governance tokens
- Farming – Staking: Providing liquidity through trading pairs such as ALGO – BANK, ALGO – USDC,… operating model similar to Helio Protocol
- Boosted vaults: Algofi’s bonus store, which users can take advantage of to receive compound interest by compounding profits when mortgaging crypto assets in large quantities
- AlgoStable (STBL): The community can obtain Algostable by mortgaging the asset and then borrowing Algostable like other assets on Algofi’s protocol, and the entire minted supply of Algostable will be permanently buried in the protocol Algofi, so any Algostable leaving Algofi is fully collateralized. Borrowers will have to pay interest, and interest rates will be set directly by governance token holders. The interest earned will be used to buy back BANK governance tokens.
The Algofi difference
Algofi has different characteristics compared to other product projects as follows:
- Algofi is the first piece to use Lending & Borrowing on the Algorand ecosystem and inherits the outstanding modern technology of the Algorand platform, allowing investors to use Algofi to reduce costs to the lowest level.
- The interface of the protocol is more friendly and easy to use, especially the Pure Proof–of–Stake (PoS) consensus mechanism helps transactions process quickly at a speed of 1,000 TPS per second.
Algofi development roadmap
Quarter 1/2022:
- Launch of Algofi DEX decentralized exchange.
- Launch of Aeneas ALGO rewards on Algofi protocol.
- On March 1, 2022, the synthesis, analysis and product development process was launched.
- On March 14, 2022, the Algofi NanoSwap product was released.
Quarter 2/2022:
- In mid-June 2022, V2 lending protocol will be launched (V2 Lending Protocol).
- At the same time, a long-term roadmap is released.
Quarter 3/2022:
- Mid-September 2022 public sale of BANK tokens.
- At the same time, manage and launch the BANK token.
Quarter 1/2023:
- Token emission and use of Algofi DAO in token management decisions.
- Dao execution is based on community input.
- Marketing and growth of autonomous products that DAOs can use to drive discovery and user engagement at the protocol level.
Quarter 2/2023:
- Launching decentralized backend products such as storing user asset ID data on DEX, supporting protocol security and product transparency.
- Launch of Algofi Fund, Programmatic Bonuses & Sponsorships.
- Deploy Algofi DAO as xGovernor.
Investors
- August 31, 2021: Pre Seed round, Algofi raised $125K through Y Combinator.
- November 31, 2021: Seed round raised $2.8M with the participation of investors such as: Union Square Ventures, Pillar VC, Arrington XRP Capital.
Core Team
- John Clarke: used to work at Citadel Education, a leading fund management company in the world. In addition, John Clarke graduated from MIT with a double degree in computer science and mathematics. Next is Owen Colegrove – Founder of Algofi
- Owen: Formerly an economic strategist at Citadel, Owen previously graduated from UCSB with a doctorate in physics
- Paul Collela: Software engineer in the hedge fund industry, graduated from MIT majoring in computer science
- Maksim Ivanov: Algorithmic trading developer, graduated from UC Berkeley with a major in computer science
- Ibu Karel: Before joining Algofi, Ibu ran an Algorand-focused social media site, Algoran HD. graduated from Hartt with a major in music
Tokenomics
Update…
Exchanges
Update…
Project Information Channel
- Twitter: https://twitter.com/algofiorg
- Telegram: https://t.me/algofi
- Discord: https://discord.com/invite/algofi
- Reddit: https://www.reddit.com/r/algofi?rdt=51081
- Blog:
Summary
Algofi is one of the projects with great development potential that is strongly supported by Algorand’s technologies to help the ecosystem help the Algorand ecosystem become stronger and more complete. The products are designed to be easier to use and more convenient when compared to AAVE and Helio Protocol. Algofi is in the process of upgrading its products with the Algofi V2 module and bridging the gap between lending, borrowing and stablecoin mining by natively integrating a stablecoin with a lending protocol to facilitate user marketing. used in the most effective and efficient way.
Through this article, you probably have some basic information about the Algofi project to make your own investment decision. Please leave comments and suggestions for me in the next articles. !
