The Algorand Foundation intends to support the growth of decentralized finance (DeFi) on its network through a new 150 million ALGO fund, the firm said in a press release on 10 September.
Called the “Viridis DeFi Program”, the new fund aims to support the development of DeFi applications on the Algorand blockchain, and fuel the growth of decentralized exchanges, money markets, options markets, synthetic asset applications, and NFT platforms. The Algorand Foundation has already allocated 150 million ALGO tokens (worth around $315 million at the time of writing) to the newly established fund. The Algorand Foundation’s CEO, Sean Lee, said in a statement:
“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.”
50 million ALGO, the network’s native token, have been re-allocated from the AlgoGrant fund to exclusively support the development of DeFi infrastructure and applications. From these tokens, $5 million worth will be given out in the form of a SupaGrant for the creation of “bi-directional bridges from Ethereum and other chains”, while an additional $5 million will be used for the integration of oracle networks with associated price feeds.
The remaining 100 million ALGO tokens will be used to support and provide liquidity incentives to the Algorand DeFi ecosystem, ensuring that “quality DeFi projects will be able to access liquidity easily”.
Algorand was no the only one to create a massive fund for its ecosystem today. Blockchain platform Harmony also announced the launch of a $300 million fund on Friday, aimed at attracting projects that are already running on other networks.