After a series of circumstances made it impossible to keep it to the greatest standard, Algofi, the largest decentralized financial protocol on layer-1 blockchain Algorand, announced its closure.
DeFi Protocol Algofi to Shut Down Due to Decline in Algorand
According to a blog post, the lending, borrowing, and trading website will soon switch to withdrawal-only mode.
To this day, our belief in the strength of Algorand’s technology and novel consensus algorithm has not wavered,
Algofi
The Decline in Algorand Affected Algofi Deeply
Before the crypto markets underwent a protracted drop that saw ALGO fall as low as $0.09 last month, Algofi was established at the height of the previous bull market, when Algorand (ALGO) was trading at $1.85. The decline, combined with the SEC’s tough posture following its recent designation of Algorand as security, has slowed the development of DeFi ventures on the once-hyped blockchain.
According to DefiLlama data, Algorand‘s total value locked (TVL) is currently $59 million, a significant decrease from February’s more than $200 million. Consequently, this means the end of the DeFi protocol Algofi which holds 55% of the Algorand value.
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