Algofi, the largest DeFi protocol in the Algorand (ALGO) ecosystem, recently announced that it would cease its operations. The DeFi protocol will be redesigned only in withdrawal mode and will close all its social media accounts except for Discord.
The End of the Algofi Era in DeFi
Algofi, the largest DeFi protocol built on the Algorand ecosystem, announced that it has decided to halt its operations in a surprising move. In the announcement made from Algofi’s official Twitter account, it was stated that the protocol would switch to withdrawal mode only and close all social media accounts except for Discord.
In 2021, the DeFi protocol received a $2.8 million investment with the participation of major crypto companies such as the US-based giant crypto exchange Coinbase, Y Combinator, Jump Crypto.
According to data provided by the DeFi data platform DefiLIama, the total value of locked assets (TVL) in the protocol fell sharply as expected after the announcement that Algofi would cease its operations. Before the decision, the TVL, which had risen to $135 million, stands at $32.36 million at the time of writing.
What is Algofi?
Built on the Algorand ecosystem, Algofi is a decentralized exchange (DEX) and lending protocol that allows users to lend various assets on Algorand to earn deposit interest.
The Algofi platform stood out with a unique feature it offered called Zap. With this feature, a user could convert any asset into liquidity pool tokens in a single transaction. Thus, swap and withdrawal transactions could be carried out smoothly and at once.
Algofi, with the second version it launched in August 2022, expanded and improved the Zap feature, enabling users to smoothly carry out their borrowing and staking transactions. In addition, support was provided for the hardware wallet Ledger.
