Algorand Foundation Launches $300 Million Fund to Support DeFi Innovation
Blockchain platform Algorand has created a $300 million fund in the form of ALGO tokens to encourage the growth of the DeFi ecosystem on Algorand platform. This marks a growing trend in the DeFi sector as other platforms seek to compete with Ethereum blockchain, on which most DeFi projects have been based. The fund from Algorand will fuel the growth of decentralized exchanges, synthetic asset applications, NFT platforms, money markets, and options markets running on blockchain networks. Meanwhile, other companies are tapping into the short- and long-term potential of DeFi with various initiatives. Some of these companies include WonderFi Technologies Inc., DMG Blockchain, Square Inc., Virtu Financial Inc., and DeFi Technologies Inc..
Kevin O’Leary backed WonderFi Technologies Inc. has received approval from its board of directors to acquire an additional CAD 6.8 million in crypto and DeFi assets. The acquisition will support WonderFi’s mission to provide better access to DeFi simply and securely.
These assets will be added to the company’s digital asset treasury, which the company intends to generate yield on through staking and other DeFi mechanisms.
One of these mechanisms is the use of stablecoins USDC and DAI for treasury management, for which WonderFi’s board has given its approval. The use of stable coins for treasury management is a growing trend for institutions, which are investing in digital assets to help companies tap into DeFi and DeFi opportunities.
WonderFi intends to use stablecoins in its corporate treasury to optimize its balance sheet through yield generation while maintaining price stability with the US dollar. Left in a traditional savings account, WonderFi’s cash would generate an average of 0.25%.
The company’s mission of bringing DeFi to the masses was also advanced on August 31, when the company announced it had begun trading on the NEO exchange under the ticker “WNDR”. The launch on the exchange gives WonderFi further access to institutional capital to fund growth. Investors will now be looking to learn more about future developments for the company as progress accelerates.
WonderFi investor and inspiration for the company’s name, Kevin O’Leary “Mr Wonderful”, commented, “Today’s launch marks the culmination of hard work, smart ideas, and a great team. WonderFi is focused on being the number one company in the DeFi space and this is a major milestone for them.” For more information about WonderFi Technologies Inc.
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