Blockchain platform Algorand created a $330 million decentralized finance (DeFi) fund today, to encourage growth of DeFi on Algorand.
Algorand is a proof-of-stake protocol with high transaction speeds that was created by computer scientist Silvio Micali. It has a two-layer system for operating both normal transactions and complex DeFi ones. Plus, when new blocks are made, rewards are handed out to those who hold its native coin, the ALGO.
The fund will be focused on growing out the DeFi ecosystem on the Algorand platform. DeFi is a growing subsect of crypto that's focused on financial tools like lending, borrowing and trading with synthetic assets — but in a decentralized fashion. DeFi rose to popularity on the Ethereum blockchain but other rival chains are seeking to emulate its success.
The fund will be in the form of ALGO tokens, to be handed out to potential projects. It takes the form of 150 million ALGO, worth $334 million at current prices.
Not to be outdone, Harmony, a blockchain platform designed for running Ethereum applications, similarly announced a $300 million fund today. It's focused on attracting projects that are already running on other blockchains, such as Ethereum, and scaling solutions xDai and Polygon.