DeFi Protocol Algofi to Wind Down

Algofi, a DeFi Protocol on Algorand, will wind down because current events have made its continued operations non-viable. The Algofi team said the protocol would be set to a “withdrawal-only mode” and shut down all social media accounts except its Discord channel “to ensure seamless, unified communication.”

The winding down process is expected to take several months, during which the team will reduce the collateral factors of the digital asset markets on its platform, allowing liquidity to migrate to other protocols.

Algofi is a lending protocol built on Algorand that allows users to earn interest, borrow and swap against their ALGO tokens.

Following Algofi's announcement, the total value of assets locked on Algorand fell by more than 5.44% to $59.03 million, according to DeFillama data.