- Algofi has announced its decision to shut down due to various challenges in maintaining the protocol’s desired quality level.
- The platform, known for its lending, borrowing, and trading services, will soon transition into a withdrawal-only mode.
- Algofi was established during a bullish market period when the value of Algorand (ALGO) was trading at $1.85
Algofi, a decentralized finance protocol operating on the Algorand blockchain, has announced its decision to cease operations due to a combination of factors that have made it challenging to maintain the protocol at its desired level of quality.
The platform, which facilitates lending, borrowing, and trading, will soon transition into a withdrawal-only mode, as stated in a blog post. Algofi expressed its unwavering belief in the strength of Algorand’s technology and innovative consensus algorithm.
Today, we say goodbye to @algofiorg, a pioneer for DeFi on Algorand. Its work marked a significant step in our DeFi evolution.
Although it's the end of an era, the journey continues. The Algorand DeFi ecosystem is alive, resilient, and continuously innovating.
— Algorand Foundation (@AlgoFoundation) July 11, 2023
Algofi to shut down
Algofi was established during the peak of the previous bullish market when the value of algorand (ALGO) was trading at $1.85. However, the subsequent prolonged decline in the cryptocurrency markets led to ALGO’s value plummeting to as low as $0.09 last month.
This decline, coupled with the recent classification of algorand as a security by the U.S. Securities and Exchange Commission (SEC), has impeded the growth of decentralized finance projects on the previously highly anticipated blockchain. According to DefiLlama data, the total value locked (TVL) on Algorand currently amounts to $59 million, a significant decrease from the over $200 million recorded in February.