DeFi on Alogrand is now in full swing with today’s launch of AlgoFi Dex Covered: AlgoFi Dex To Spur TVL What Does it Offer? Algorand Standard Assets (ASA’s) Outlook AlgoFi Dex To Spur TVL TVL on Algorand is set to get a much-needed boost. Leading protocol Algofi, dubbed ‘Algorand’s liquidity protocol’, already offers lending, borrowing, […] The post AlgoFi Dex Launches on Algorand, Completing Proper DeFi Suite appeared first on CryptosRus.

AlgoFi Dex Launches on Algorand, Completing Proper DeFi Suite

DeFi on Alogrand is now in full swing with today’s launch of AlgoFi Dex

Covered:

  • AlgoFi Dex To Spur TVL
  • What Does it Offer?
  • Algorand Standard Assets (ASA’s) Outlook

AlgoFi Dex To Spur TVL

TVL on Algorand is set to get a much-needed boost. Leading protocol Algofi, dubbed ‘Algorand’s liquidity protocol’, already offers lending, borrowing, pooling, staking, and farming. Today, they added the critical component, and that is swapping. Live on mainnet now. This launch completes what is certain to be the DeFi fulcrum of Algorand.

Algofi also launched an algorithmic stablecoin, $STBL, which currently can be staked for around ~9.76% APY. While Algorand’s DeFi has not galvanized the attention of the mainstream crypto world, the TVL for Algofi has been steadily increasing (measured in Algo), according to DeFiLlama. Launched in November, it is currently sitting at ~45 million USD in total-value-locked.

credit: defillama

The addition of the Dex will certainly boost the TVL drastically, as liquidity inflows from swapping create massive TVL; just have a look at Trader Joe on Avalanche, which currently boasts ~1.84 Billion USD of TVL. Algorand faces the uphill battle of not being EVM compatible, something Avalanche greatly benefits from. However, this is set to change, with Algorand planting their flag at this month’s ETH Denver to try and build interoperability between the two chains.

Recommended: Algorand Makes It Rain At ETHDenver

What Does it Offer? Is There Potential?

In terms of Algofi’s Dex, there are a couple of features that make it innovative and quite useful from a user perspective. First, the Dex offers composability, meaning that Algofi can connect with various other dApps, such as arbitrage, which can be performed in one atomic transaction. Users can sell one asset into another and then in another, all in one group transaction. This is something impossible on Uniswap.

Secondly, Algofi will allow for Flash Loans. Flash Loans enable the user to borrow instantly with no collateral. The kick is that the liquidity is returned to the pool within one transaction block, or the transaction will be reversed. These loans can aid in TVL, stability of prices for different assets, and price discovery, too. AAVE pioneered Flash Loans on Ethereum.

algofi.org

Algorand Standard Assets (ASA’s) Outlook

What will be swapped on Algofi, you may ask? As Algorand has grown, admittedly in the shadows, there has a been a number of ASA’s (Algorand Standard Assets), which are just like ERC-20 tokens that are natively built and traded on the other Alogrand Dex, Tinyman. You can see all of the most liquid ASA’s on Tinychart.org. One of the earliest, and most popular ASA’s is DeFly. There is also wrapped Ethereum and Bitcoin. 

DeFly, trading at $0.014 is “Algorand’s first DEFI wallet app redefining decentralized trading. Charts, swaps, stats in one mobile app, with full Algorand composability.” DeFly is the most liquid ASA in the entire Algorand ecosystem, with just over ~2.1 million USD in liquidity. This may see tiny, but Alogrand is in its early stages in terms of native tokens deploying on top of it.

As great as this is for the Algorand ecosystem, they need to move fast. The competition for “attention” means that the tech doesn’t always speak for itself. The masses have to get onboard, and buzz has to be there. Algorand has taken the organic approach, and projects are now launching one by one. 2022 will be the make or break year for Micali’s creation in terms of DeFi.

*AlgoFi’s $BANK Token is set to launch sometime in 2022.

Recommended: Musk Family Invests In Algorand

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