Algorand Foundation Assigns 150 Million ALGO to Support DeFi Innovation on the Blockchain
The launch of the $300 million ‘Viridis Fund’ will be allocating $200 mln for liquidity — the fundamental driver of DeFi and DApp adoption, and $5 mln each for integration of oracle networks and to build bridges from Ethereum and other chains.
Algorand Foundation, the organization behind the decentralized digital currency and transactions platform Algorand, has announced the launch of a $300 million ‘Viridis Fund’ to support decentralized finance (DeFi) innovation.
$300 million funding is in the form of 150 million ALGO, which are re-allocated from the AlgoGrant fund.
ALGO is over a $10.8 billion market cap coin trading at $2.06 as of writing. In the past week, the token is up more than 80% and 386% YTD but is still down more than 41% from its all-time high of $3.56 about two years back.
The funds will be used to fuel the growth of the DeFi ecosystem, including decentralized exchanges, money markets, options markets, synthetic asset applications, and NFT platforms on Algorand, which it defines as sustainable, carbon negative, and high-performance blockchain.
“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,” said Sean Lee, CEO of the Algorand Foundation.
For liquidity, which is a fundamental driver of DeFi and DApp adoption, 100 million ALGO worth about $200 mln are assigned so that quality DeFi projects get access to liquidity easily.
With this launch, the Foundation also announced two ‘SupaGrants’ — $5 million Oracle SupaGrant and the $5 million Bridge SupaGrant.
Oracle SupaGrant seeks proposals for the integration of oracle networks with associated price feeds, while Bridge SupaGrant calls for proposals to build bi-directional bridges from Ethereum and other chains.
Founded in 2017, Algorand claims to be used by nearly 1,000 global organizations.
To capitalize on the ongoing NFT mania, the developers are meanwhile working on new non-fungible token applications to attract the new mainstream crowd, especially those who might be priced out on the Ethereum network.
Moreover, it is launching governance features for its token holders, which are set to go live on October 1st.