The Algorand Foundation has established a new fund to support the development of a DeFi ecosystem.
The Algorand Foundation has announced the creation of a $300 million fund to help expedite the development of its DeFi ecosystem.
Algorand Announces the DeFi Fund
The Algorand Foundation has set aside 150 million ALGO tokens, worth over $300 million, to fund creating a decentralized finance ecosystem on its network.
Algorand is a scalable Proof-of-Stake blockchain created by computer scientist Silvio Micali. Its block times are around four seconds.
The foundation has announced two “SupaGrants,” each worth $5 million, as part of Viridis. The initial funding will be used to build an oracle and a bridge network. DeFi infrastructure such as Oracles and Bridges is deemed important.
Algorand has joined the current battle for DeFi users among several Layer 1 blockchains. Other projects, including Fantom and Harmony, have recently launched substantial ecosystem funds to entice DeFi developers to join their networks, and Ethereum now boasts the largest DeFi network in the crypto world.
IDEX, Hummingbot, Yieldly, Opulous, and Securitize are among the DeFi projects already hosted on Algorand. However, compared to many other Layer 1s, the ecosystem has a low level of liquidity and activity. Therefore, Algorand wants to build the groundwork for a thriving ecosystem by providing critical infrastructures like a bridge and oracle.
A fund of more than $300 million will undoubtedly entice developer teams to create dApps and drive the DeFi ecosystem’s early growth. The network has also formed several high-profile collaborations. For example, Koibanx, a Latin American financial infrastructure company, inked a blockchain deal with El Salvador’s government on Aug. 31.
In recent weeks, the price of Algorand has increased. ALGO is presently trading at $1.88, up more than 120 percent in the last month. Following a prolonged climb, it reached a high of $2.41 on Thursday.