Algofi: What It Is and How It Fits Into DeFi Lending and Yield Strategies
When you hear Algofi, a decentralized finance protocol built on the Algorand blockchain that enables lending, borrowing, and yield generation without banks. Also known as Algofi Finance, it lets users lock up crypto like ALGO, USDC, or WAVES to earn interest or borrow against their holdings—all without a middleman. Unlike Ethereum-based platforms, Algofi runs on Algorand, which means near-zero fees and transactions that settle in under a second. That’s not marketing—it’s the reality of how Algorand’s pure proof-of-stake network works.
Algofi isn’t just another lending app. It’s one of the few DeFi protocols on Algorand that actually lets you do more than just stake. You can lend your USDC and earn 5-8% APY, or borrow ALGO by putting up WAVES as collateral. The protocol uses real-time oracle data to adjust loan-to-value ratios, so your position doesn’t get liquidated because of a price spike. It’s designed for people who want to use crypto like money—not just gamble on tokens. And because it’s built on Algorand, there’s no gas war. No waiting. No $50 fees to borrow $200.
Related to Algofi are other key pieces of the DeFi puzzle: DeFi lending, the practice of lending cryptocurrency to others through smart contracts instead of banks, yield farming, earning rewards by providing liquidity to DeFi protocols, and Algorand DeFi, the growing ecosystem of financial apps running on the fast, low-cost Algorand blockchain. These aren’t buzzwords—they’re the tools real users rely on. You’ll find posts here that break down how Algofi’s interest rate model compares to Aave’s, why some users switched from Ethereum to Algorand for better yields, and how to avoid the common mistakes people make when borrowing on Algofi.
Some of the posts in this collection show you exactly how to set up your first Algofi position, what happens when the price of your collateral drops, and which tokens actually move the needle in terms of rewards. Others expose scams that pretend to be Algofi—fake websites, fake airdrops, fake support teams. There’s no fluff. Just what works, what doesn’t, and why. If you’re looking to earn passive income from crypto without getting trapped in a high-risk game, this is the place to start.
Algofi Crypto Exchange Review: What Happened and Why It Shut Down
Algofi was once Algorand's largest DeFi protocol, but its exchange never gained traction. With zero trading volume and a collapsed TVL, it shut down in 2023. Learn why it failed and what to use instead.
- August 19 2025
- Terri DeLange
- 20 Comments