The Algofi Vault enables users to earn Algorand Foundation Governance Rewards while taking advantage of the [Algofi Lending Protocol]( and earning [Aeneas ALGO Rewards](
As discussed in [Algorand Governance]( governors are eligible for governance rewards if their account:
* Maintains an ALGO balance at least equal to their commitment amount
* Votes on all proposals
This is accomplished through the Algofi Vault — a unique (1 per user) Algorand Account that the user has control over through the Algofi protocol. This vault account is the same account as the [Storage Account]( for the Algofi lending protocol. The user operates their Algofi Vault via the protocol to supply ALGOs to the Vault, commit those ALGOs to Governance, vote via the Vault, and claim governance rewards from the Vault.ALGOs supplied to the Algofi Vault are called “Vaulted Algos” or vALGOs. In the Algofi Lending Protocol they have the same price and collateral factor as ALGOs. The key difference between vALGOs and ALGOs is that you can participate in Algorand Governance with your vALGOs and borrow against them in the lending protocol, but no user can borrow your vALGOs. Likewise, you cannot borrow another user’s vALGOs. Only ALGOs in the main ALGO market can be borrowed.
**The key benefit for participating in governance via the Vault is that the user can borrow assets from the Algofi Lending Protocol against their Vaulted ALGOs (vALGOs). Then, as usual, borrowed assets can be used for trading, yield farming, etc. all while the user is earning Governance Rewards on their vALGOs.**
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TLDR: HUGE THINGS HAPPENING ON ALGORAND DEFI.
Source: [
There are other protocols launching soon as well, such as AlgoGard, and Folks Finance.
I’m going to stay paranoid and watch how this governance goes for those on AlgoFi, I’d hate to lose any of my stack to an exploit
Anecdotally, isn’t there a good chance that ALGO makes a surge upward tomorrow with people buying a bunch to have for governance staking?
Can’t imagine much sell pressure since it’s down almost 40% from the last governance lock-in period?
This is going to be so nice. Gains maximized.
I’m a complete noob when it comes to Algorand, I have 100$ in ALGO on Binance, what should I do with it?
As somebody still sketched out about this, I’m not gonna mess with it the first time around. So now I’m a bit bummed the governance rewards will likely be split between more users. I guess this is good for adoption though?
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I’m new at this and have algo on coinbase.. will I receive awards automatically to my coinbase account or am I required to open an algo wallet to receive awards?
I am heavily invested in ALGO but sadly it is becoming an ASA Rugpull central.
Watering your dead plant isn’t going to bring it back to life dear
anyone split their Algo (and governance) between two wallets like myAlgoWallet and Pera?
don’t even know how to use defi on algorand. is this worth getting into now? i preferred the governance.
I think I am going to test it out with just a handful of Algos. Then I can try it and see how it goes.
It feels like defi is just rich people trying to fleece one another in giant pyramid schemes and magic money swaps. I will understand this as big news when the car salesman tells me that I can get a car with a smart contract. In the meantime it just feels like a massive wealth cliff that people like me are gambling on. Like, I have $25 worth of Algo. So all this stuff is good for me, I guess? It feels like a technology with no real use, just a way for rich tech savvy people to play with money. I am ranting. Downvote whatever, I am still waiting for the day when defi is actually used to finance construction, consumerism, and capital investments etc.
[deleted]
Next hack in a month