Algorand (ALGO) launches $300 million fund to support DeFi innovation

300 million for the Algorand ecosystem

The Algorand Foundation (ALGO) has announced the launch of the “Viridis DeFi” program to boost its ecosystem. The fund is endowed with ALGO 150 million, or about $320 million at current prices. The goal is to support the development of decentralized applications (dApps) and to encourage liquidity providers to come to the Algorand network.

About one third of the funds will be allocated to the AlgoGrant program. The objective is to develop dApps dedicated to decentralized finance (DeFi) such as decentralized exchanges (DEX) and automated market makers (AMM).

As part of this, the first $5 million “SupaGrant” will take the form of a call for projects to build a two-way bridge between Ethereum (ETH) and other blockchains. Sean Lee, CEO of the Algorand Foundation, said in a statement:

“The Algorand Foundation is excited to launch this funding program to help accelerate the adoption of DeFi.»

A major liquidity program

Since liquidity is a fundamental driver of DeFi adoption, Algorand Foundation has decided to allocate 100 million ALGO or approximately $200 million for this purpose. Thus, users will be encouraged to provide liquidity within the Algorand ecosystem.

In effect, the Foundation is ensuring that quality DeFi projects will be able to easily access liquidity by encouraging users to provide capital. A number of projects are already eligible such as the decentralized exchange Tinyman.

Following the fund’s announcement, ALGO’s share price climbed to $2.20. The token is up 80% in the last 7 days. At the time of writing, ALGO is trading around $2.15.

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About the author : Florent David

Algorand (ALGO) launches $300 million fund to support DeFi innovation

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Engaged in the crypto ecosystem since 2017. I am particularly interested in decentralized finance (DeFi), Ethereum 2.0 and non-fungible tokens (NFT).
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