New fund aims to invest hundreds of millions of dollars in Algorand DeFi growth

Decentralized finance (DeFi) has developed significantly in the past two years. The Algorand Foundation has launched a new fund aimed at allocating funds for certain DeFi projects that wish to build on its native blockchain.

The funding pool is called the Viridis DeFi Fund and is led by the Algorand Foundation, which is responsible for the development of the Algorand blockchain and its ecosystem. “The fund will provide 150 million Algos to drive significant early growth of the DeFi ecosystem on Algorand,” Said Friday announcement on the Algorand Foundation website.

“The fund will promote the development of decentralized exchanges, currency markets, options markets, synthetic asset applications, and NFT platforms, all of which will run on the best blockchain network for future finance,” Algorand’s public statement Said on Friday.

At the time of launch, Algorand’s native token (ALGO) was trading at $1.96. based on About CoinMarketCap data. Given the 150 million ALGO mentioned, the current value of the fund is $294 million.

As the Ethereum blockchain has been working hard to expand and meet the demand for DeFi, because The high cost of the network is obvious, Other blockchains are getting more and more attention.

When the fund was launched, the Algorand Foundation announced the first two Algorand DeFi building categories, aiming to obtain funding from the fund. Call them “SupaGrants” and each grant is worth $5 million. “We are happy to share the first two SupaGrants, which are designed to support the creation of critical DeFi infrastructure,” the announcement detailed. “Launched Oracle SupaGrant worth 5 million USD and Bridge SupaGrant worth 5 million USD.”

The Oracle of Encryption Essentially, it is a method of routing information data from sources outside these networks to certain blockchains. Bridges help connect isolated blockchains So they can interact with each other, adding potential to a single network that may be limited. Oracle funding is open to interested applicants, while bridge funding is still in progress.