In a press release this week, the Algorand team announced that Algomint, the “golden bridge to the Algorand DeFi ecosystem”, will be launched in the third quarter of 2021. The platform will bring liquidity and unlock further DeFi potential in the Algorand network.
The Algomint platform enables users to invest, trade, send and receive, borrow and lend, wager and generate returns with 46,000 transactions per second and a fee of $ 0.001 per transaction.
With Algomint, users can trade Bitcoin on the Algorand DeFi marketplace by having goBTC minted on the platform, while the original Bitcoin is locked in a 1: 1 ratio in a secured third party depository. Users burn goBTC in the same ratio when they withdraw Bitcoin from the network. Algomint will use the same functionality for other cryptocurrency assets such as ETH and USDT. With a product launch in the third quarter, the platform will initially offer goBTC and goETH as the first core resources for the ecosystem. Algomint will also try to get in touch with users through a governance token, goMNT, which is also expected to be rolled out in the third quarter of 2021. In the following quarter, the team expects the rollout of goUSD and the rollout of programmable liquidity via the team’s Balancer Decentralized Exchange.
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The Algomint team is led by Meld Gold founders Michael Cotton and AJ Milne. Meld Gold uses Algorand’s protocol to improve the efficiency and accessibility of the gold supply chain.
Algorand’s team sees the clear potential in terms of DeFi’s explosion and applicable use case with Algorand’s protocol. The press release cites annual DeFi growth of 7,500%, despite Ethereum’s challenges in terms of speed and transaction costs. The press release also notes that only 1% of the capital inflow on Wall Street this year will be used in the DeFi network, indicating significant market potential.
$ALGO looks to continue efforts in the DeFi landscape. | Source: ALGO-USD on TradingView.com
What is said
In the press release, Sean Ford, COO of Algorand stated that Algomint “will provide a necessary bridge for digital assets to penetrate the growing Algorand ecosystem” and that he is excited about the opportunities for users to be able to access the platform engage. “Tools like Algomint serve as the foundational components in the incredible DeFi to Algorand expansion we’re seeing right now,” he added.
And the partners agreed with this feeling. CFA and Apollo Capital’s chief investment officer Henrik Andersson added that Algomint “would essentially open the Algorand network to the rapid growth we are seeing elsewhere in the DeFi markets.” Andersson saw the value proposition as particularly valuable, emphasizing that “being able to take advantage of transaction speeds of 4 seconds and costs less than $ 0.001” would “offer the market an entirely different proposition.”
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