Algorand-based DeFi protocol Algofi winds down operations

AlgoFi, the largest DeFi protocol on Algorand, recently announced that it will be winding down its operations. With the bear market persisting, the Algofi team has thoroughly reflected on their recent developments and ultimately made the decision to cease operations.

While acknowledging their accomplishments, such as building products using Algorand’s robust technology and raising $2.8 million in funding from notable participants like Coinbase, Jump Crypto, and Y Combinator, the team has chosen not to continue supporting the project. 

According to the AlgoFi protocol, “the team believes that going forward, we are no longer able to provide the necessary support to maintain the protocol at the high standards which we believe the community deserves.”

First, in the wind-down process, the platform will be shut down and put into a “withdrawal-only mode.” However, AlgoFi’s Discord community channel will remain open throughout the process for any questions or concerns related to development.

Next, the collateral factors of ALGO, vALGO, STBL, USDC, goBTC, and goETH for V1 lending will be reduced.

According to AlgoFi, “the markets will be reduced over several months to ensure liquidity migrates off.” This reduction will follow a schedule set by the AlgoFi team. The same applies to the collateral factors of the ALGO, vALGO, STBL2, STBL2-USDC-LP, USDC, goBTC, and goETH markets for V2 lending.

Additionally, current Liquidity Mining programs on the protocol will be stopped, and no new proposals will be allowed.

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