The Algorand Foundation is launching a $ 300 million DeFi fund. This could push ALGO prices higher.
Is the next DeFi boom coming to Algorand?
The cryptocurrency Algorand (ALGO) has been able to increase its value by more than 100% in recent days. However, the rally may still continue, because: The Algorand Foundation has just announced its new DeFi program Viridis together with a $300 million fund (150 million ALGO). The fund is designed to help develop DeFi apps in the Algorand ecosystem.
We’re excited to launch the $300M ( 150M Algo ) VIRIDIS DeFi Fund today. This is a powerful commitment to enabling the most vibrant, wealth creating DeFi ecosystem on the high performance, sustainable Algorand network.https:/ / t. co / q8xWUBGR7P# DeFi # GreenCrypto # Viridis pic.twitter.com/QY9UjBYfHe
– Algorand Foundation (@AlgoFoundation) September 10, 2021
Specifically, it is planned to use the fund to develop money markets, options markets and decentralized exchanges (DEX) on the Algorand platform, as well as apps for synthetic assets and NFT platforms.
Sean Lee, CEO of Algorand Foundation about the move:
“The Algorand Foundation is pleased to launch this funding program to 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 considered the world’s most energy-efficient, scalable, and cost-effective DeFi ecosystem.“
Thus the 300 million dollars will be distributed
50 Million ALGO (at current prices 100 million dollars) from the AlgoGrant fund will be used exclusively for the development of the DeFi infrastructure and for DeFi apps (dApps). For example, to support critical DeFi infrastructures such as cross-chain bridges and price oracle. In addition, the focus will be on the integration of oracle networks with associated price feeds. The Foundation wants to use the rest of the fund for further application development in Algorand’s DeFi ecosystem. Another 100 million ALGO ($200 million) will be used for liquidity incentives. This ensures that high-quality DeFi projects on Algorand always have sufficient liquidity.
Algorand in El Salvador: Cooperation drives ALGO course
Algorand has just completed a massive price rally (we reported). ALGO, Algorand’s native token, has surged more than 100% in recent days – to local highs of up to $ 2.47. Among other things, the course benefited from the positive news from El Salvador.
Just recently, Bitcoin officially became legal tender in the Central American country. And as it has now become known, the government has entered into a partnership with the leading Latin American crypto company Koibanx. This should take care of the further integration of blockchain technology in the country. Algorand benefits from this because Koibanx uses Algorand (ALGO) as a layer 1 solution.
Koibanx CEO Leo Elduayen comments bullish on Algorand (ALGO), says:
“El Salvador is paving the way for other countries that want to make the promise of blockchain a reality. We are honored to work with the government to provide Salvadorans with access to a global digital economy and the potential for a more prosperous future.“
To make this possible, however, a technology is needed that is robust enough to meet the needs of an entire nation. Elduayen:
“That’s what we found in Algorand – a proven blockchain that meets our stringent requirements for speed, security and stability.“
Meanwhile, the ALGO price is taking a break, trading at a slight gain of around 4% over the past 24 hours. For investors, a good entry point could emerge as ALGO is still around 36% below the all-time high at $ 3.28.
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