A competitor to Ethereum is launching a $300 million fund to foster decentralized finance (DeFi) innovation on its network.
Algorand Foundation, a blockchain company, is putting 150 million ALGO, which is worth $309 million at the time of writing, into the Viridis DeFi Program in order to fuel the growth of development on its platform.
According to Sean Lee, CEO of the Algorand Foundation, the fund will help accelerate the adoption of DeFi across the project’s ecosystem.
“Developing the necessary infrastructure, application ecosystem, and liquidity will be critical to ensuring that DeFi on Algorand is recognized as the world’s most energy-efficient, scalable, and low-cost DeFi ecosystem.”
The first 100 million ALGO will be used to support and provide liquidity incentives to the Algorand DeFi ecosystem. The remaining 50 million ALGO will be used to develop DeFi infrastructure and applications (DApps).
ALGO’s price has risen this week as the majority of the cryptocurrency market has experienced a correction. According to CoinGecko, the 18th-ranked asset by market cap is currently trading at $2.06 and is up 68.4 percent in the last seven days.
According to popular crypto trader and analyst Lark Davis, the existence of these ecosystem funds is a positive development for the sector as a whole.
“Over the last few weeks, most of the major chains have announced multi-billion dollar funds to bootstrap ecosystems. Nobody is optimistic enough!”