Algorand witnessed an impressive cash injection in late 2022, and DeFi was mainly responsible for that growth. It has several innovative projects that appeal not only to the crypto community but to investors as well.
The network uses a pure proof-of-stake (PoS) model to distinguish itself from other cryptocurrencies, like Bitcoin. So, Algorand’s core strength lies in its emphasis on decentralization, scalability, and community.
Being an advanced blockchain, Algorand aims to create a borderless economy. The main goal was to provide a platform for long-term economic opportunities. So far, Algorand has excelled at having some top DeFi platforms in its ecosystem. Let’s talk about some of the top DeFi projects in Algorand.
1) Lofty Finance
Lofty simply helps people secure a decent financial future by making investments in real estate. It allows you to buy tokenized real estate investments for as little as $50 and has rent paid into your wallet.
Lofty is involved in what’s called “fractional purchases.” This involves breaking down assets into units that can be easily bought and sold. Lofty plans to make real estate investing accessible to everyone. And building on a blockchain is essential to achieving that goal.
Today we're launching our beta solution to easily on-ramp and off-ramp between fiat and $USDCa.
This beta solution is not only important for Lofty users, but is vital for the #Algorand ecosystem as a whole and will help speed up mainstream adoption 🚀
1/3 pic.twitter.com/8L32wrAjQ7
— Lofty (@lofty_ai) February 23, 2023
Loft eliminates key barriers to adopting blockchain and democratizes crypto wallets. So, anyone can sign up and access the opportunities on the platform.
2) Folks Finance
Folks Finance is the leading capital markets protocol in Algorand. This platform focuses on lending and borrowing assets in the Algorand DeFi ecosystem. Furthermore, Folks leverages smart-contract technology to provide advanced strategies. It also eliminates the risk of centralized interference.
So, Folks’ lending operations enable users to deposit liquidity and earn a continuous economic return instantly. Also, users can leverage the borrowing operation to request crypto loans. However, they have to lock up deposited funds as collateral.
The upcoming Gov7 is going to be the first quarter of the @AlgoFoundation's xGov program being live, and @FolksFinance will allow Liquid Governors to sign-up as an xGov. ✅
Dive into this article for an in-depth explanation of what xGov is. 👇 #Algorandhttps://t.co/chvecck9nD
— Folks Finance (@FolksFinance) March 28, 2023
Folk’s goal is to provide flexible and impressive interest rates alongside strong incentives for lenders and borrowers. This creates a money market that meets the needs of both parties. Folks leverages Algorand’s fast, low-cost, scalable, secure, and decentralized infrastructure to provide a unique DeFi lending and borrowing protocol.
3) Gard Protocol
The GARD Protocol is an Algorand-based lending protocol. It uses collateralized debt positions (CDP) to mint its native stablecoin, GARD. This means users have to lock their ALGOs in a smart contract to acquire GARD.
Users, however, do not forfeit their right to governance vote. They can participate in voting on the protocol. However, after minting GARD, they’ll need to find new ways to get a higher APY than staking Governance alone.
Want to know how we're spending our discretionary $ALGO to boost #AlgorandDeFi? Look no further 👀
☑️ Boost to LPs
☑️ $GARD staking boost
☑️ and more💰Let us know what you're most excited about for #Algorand governance period #7🤝👇 https://t.co/BjZ4b63RF8
— gard.algo (@algogard) March 30, 2023
GARD is intended to be a completely decentralized dollar and is backed by collateral that has intrinsic value. In other words, through a collection of guidelines and balancing mechanisms, GARD is intended to be pegged to the USD.
Gard is currently ranked 6th in Algorand in terms of TVL. Here’s the project’s whitepaper to find out more about its operations. If you are looking at investing in any of these projects, we advise you to do your personal research before making any investment.
⬆️ For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.
⬆️ Our popular Altcoin Buzz Access group generates tons of alpha for our subscribers. And for a limited time, it’s Free. Click the link and join the conversation today.
