Algorand Basis introduces $300 million funds to encourage decentralized finance
On Friday, September 10, Algorand Foundation announced a $300 million fund called Viridis DeFi Program that will be launched to provide funding for certain DeFi projects based on Algorand’s native blockchain. Currently, the Foundation is financing around $300 million and provides 150 million Algo to expand its DeFi sector.
The Viridis fund will be used to support the development of DeFi on the company's network. According to the statement, the fund will be focussed specifically on money markets, decentralized exchanges, NFT platforms, synthetic asset applications, DEXes, and more.
“The Algorand Foundation is excited to launch this funding program to help accelerate the adoption of DeFi across the Algorand Ecosystem,” said Sean Lee, CEO of the Algorand Foundation. He adds, “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.”
The fund of around $300 million will provide grants to DeFI sectors. The initial 100 million ALGO will be utilized to help the company's DeFi ecosystem by providing assistance and liquidity incentives. 50 million ALGO can be used to develop DeFi infrastructure and functions (DApps). Algorand's blockchain is expected to expand in the DeFi sector soon as a result of new investment. The goal is to attract developers to blockchain technology at a time when the crypto community is looking for new and innovative platforms.
Silvio Micali founded Algorand in 2017 for DeFi, financial institutions, and governments. The platform is based on the ideas of an open, fully decentralized, public, and scalable blockchain. It provides next-generation financial goods and protocols and reduces intermediaries to reduce the cost of transactions.
The company's native token (ALGO) has increased by 58.89 percent in a week. ALGO touched a two-year high on Thursday, trading at $2.42. Following the announcement of the foundation, the price fell to $2.01.
CBW - External Analyst