First previewed on TestNet earlier this fall, Algofi‘s simple-to-use platform is now live on Algorand, enabling everyone from crypto-native traders to less tech-savvy retail users to earn interest, access leverage, and borrow against their cryptocurrency assets. Algofi will launch the native protocol stablecoin AlgoStable, (STBL) with this launch.

Algofi’s launch completes the trifecta of core protocols on Algorand, priming the blockchain’s DeFi ecosystem for takeoff. AlgoFi, Tinyman (an Algorand-based, decentralized exchange) (DEX) and Algomint (a digital assets miner that bridges Algorand to other blockchain protocols are part of the trifecta).

“Our goal with Algofi is to develop projects that support real-world financial activity at scale–projects that institutions can ultimately use,”
John Clarke, one of Algofi’s cofounders, and Owen Colegrove were both together while at Citadel.

We are thrilled about today’s launch and feel it is an important step towards building a more inclusive, modern and efficient financial system.
The creation of STBL Coin, motivated by the need to improve capital efficiency is a key part of this launch.

We observed in the DeFi market that lending and borrowing are separated and that stablecoin mining creates capital inefficiency. Therefore, Maker and Compound should not be considered separate protocols.
said Owen Colegrove, co-founder at Algofi.

Algofi fills this gap by natively integrating stablecoins with lending protocols. This structure is more efficient and provides borrowers with the best stablecoin rates in all ecosystems.
Algofi will create 1 trillion STBL upon the launch of the Algofi protocol. Algofi users can deposit any supported asset and receive STBL as collateral. Every STBL released to circulation will have full backing from user collateral just as any other loan made under the Algofi protocol.

Algofi will continue to roll out new functionality in the coming months, including a governance portal that will enable participants to vote on changes to the protocol, and liquidity incentives–including ALGO rewards to early users through the Algorand Foundation’s Aeneas Liquidity Program.

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