Try Quests to earn cryptoAlgofi Decentralized Lending
Algofi is a decentralized lending platform where you can use your asset as collateral to obtain a loan. This analysis seeks to visualize the supply and borrow of liquidity for each asset (ALGO, STBL, USDC, goBTC, and goETH) from December 17th to February 1st. Then, we aim to establish a chart illustrating the number of wallets actively supplying liquidity over time, as well as the number of wallets actively borrowing.
Algofi is a decentralized lending marketplace built on the Algorand blockchain that enables widespread access to decentralized financing. Algofi's mission is to become the first crypto-native bank capable of bridging the divide between conventional and decentralized banking. Algofi's straightforward fiat on-ramp enables consumers to purchase cryptocurrency and earn interest without the need for a bank or central custodian. Additionally, traders may utilize Algofi to execute short sales or leveraged trades. Algofi will eventually provide more standard banking services like as savings accounts and credit cards, all of which will be facilitated by Algorand's developing DeFi network.
Algofi is able to conduct sub-cent transactions that settle in seconds by using the Algorand protocol and its Pure Proof-of-Stake (PPoS) consensus process. This is a critical component of Algofi's user-friendly, mass-accessible platform. This foundation will also allow Algofi to continue growing its platform in the future, both in terms of transaction volume and the addition of additional financial services. Additionally, Algofi selected Algorand as its platform because to its powerful local community and readily available developer tools that allow the rapid and easy generation of the smart contracts that run Algofi.
Now that we've been acquainted with the Algofi platform. Our first analysis examines liquidity supply and borrowing for each asset (ALGO, STBL, USDC, goBTC, and goETH) from December 17th to February 1st.
As seen in the results, the dominant pattern on the amount of liquidity borrowed is apparent for STBL, USDC, and goBTC assets. Meanwhile, the liquidity supply on both ALGO and goETH assets appears to have established the dominating pattern during the time period analyzed. Notably, we determined that the ALGO asset has the highest supply and borrow of liquidity. This discovery is unsurprising given that Agofi is built on the Algorand blockchain, which explains why a large number of ALGO assets appear to impact Algofi's liquidity.
In the final section, we examined the number of wallets actively supplying liquidity and the number of wallets actively borrowing over time.
As a consequence of the outcome, we can observe that the enormous number of active wallets on both liquidity borrowing and liquidity supplied occurs about ten days following Algofi's start date. The number of active wallets then begins to decline dramatically and appears to be frustrated over the time period considered.
By analyzing the daily number of active wallets that provide liquidity, we noticed that the ALGO assets have a dominance pattern in terms of active wallets, implying that Agorand users are the primary users of this platform.
As shown in the result, the number of active wallets that borrow liquidity on the STBL asset is more than the number of active wallets that borrow liquidity on the other assets for the time period specified.