Algofi, the borrowing and lending protocol built on decentralized finance blockchain Algorand, will soon shut down.
According to a July 11 announcement, developers' "belief in the strength of Algorand's technology and novel consensus algorithm has not wavered," however, the Algofi platform will nevertheless wind down soon:
"A confluence of events has taken place that no longer makes building and maintaining the Algofi platform to the highest standards a viable path for our company. Due to this, we will begin sunsetting the platform and put the platform in withdrawal-only mode shortly."Starting Sept. 1, collateral factors of ALGO, vALGO, STBL, USD Coin (USDC), goBTC, and goETH markets on both Algofi V1 and V2 will be reduced from around 80% to 0% by the beginning of December. In addition, the current Liquidity Mining programs will be "halted and no future proposals will be enacted." The Algofi protocol had $25 million in total value locked at the time of publication, down from its $135 million peak in February.
Algofi's TVL over time. Source: DeFiLlamaIn April, the U.S. Securities and Exchange Commission charged cryptocurrency exchange Bittrex with operating an unregistered exchange in the U.S. Algorand was one of six tokens deemed to be a security by the SEC. The SEC alleged the token's security-like characteristics to be partly linked to Algorand's initial coin offering in 2019.
On June 13, cryptocurrency exchange eToro halted ALGO, MANA, MATIC and DASH trading for U.S. customers, citing a "rapidly evolving regulatory landscape." To date, 68 cryptocurrencies are currently seen as securities by the SEC.
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