Top projects building on Algorand in 2022

Algorand (ALGO) is a Layer 1 blockchain designed to process transactions quickly and cheaply, similar to major payment processors like Visa or Mastercard. While Ethereum is currently the world’s largest L1 blockchain, Algorand is a tough competitor as it is a scalable, highly efficient platform that can complete transactions instantly.

Algorand implements a technology called Pure Proof of Stake (PPoS) to validate transactions, which helps maintain speed and power efficiency. Many blockchain projects have chosen to build on top of Algorand because of these benefits, but is it a serious contender for the Layer 1 throne?

In this article, we discuss some of the top projects building on Algorand in 2022 so you can decide if you want to add ALGO to your portfolio.

Little man

category: loan

Daily Users: 1.4k

Daily Transaction Value: $552,000

Locked Total Value (TVL): $13.73M

Tinyman is a decentralized marketplace that supports all tokens on Algorand’s blockchain.

The Tinyman platform enables liquidity pools between Algorand and various Algorand Standard Assets (ASAs). Participants can even create liquidity pools between ASAs themselves. In other words, a token does not have to be listed on an exchange in order to be traded.

In addition, developers and users can set up their own liquidity pools for token pairs that did not exist before. All of this is possible thanks to Algorand’s fast, cheap and secure protocol.

Thanks to Algorand’s decentralized Layer 1 solution, Tinyman has overcome the challenges of usability and scalability – major hurdles for many emerging DeFi ecosystems. The Layer 1 solution leverages the Pure Proof-of-Stake consensus mechanism, which allows platforms like Tinyman to scale to millions of users while maintaining a high transaction rate and at no significant cost to participants. And all this while saving energy and being environmentally friendly.

Algofi

category: DEX

Daily Users: 575

Daily Transaction Value: $200,000

Locked Total Value (TVL): $88.49 million

AlgoFi was the first lending platform on Algorand. It facilitates lending and borrowing and features STBL, a stablecoin native to Algorand.

AlgoFi offers credit for five different tokens on the Algorand blockchain: ALGO, goBTC (a wrapped version of Bitcoin for trading on Algorand), goETH (same for Ethereum), STBL, and USDC.

In addition to lending and lending services, AlgoFi also offers staking: participants staking STBL can earn an annual return.

Going forward, AlgoFi plans to offer more traditional banking services, such as savings accounts and credit cards, powered by Algorand’s fast-growing ecosystem.

public finance

category: loan

Daily Users: 172

Daily Transaction Value: $62,800

Locked Total Value (TVL): $79.65 million

Folks Finance is a capital markets protocol developed and hosted on Algorand, offering both credit and lending.

People’s lenders can deposit liquidity and immediately earn a continuous return. Borrowers can request crypto loans by locking deposited funds as collateral.

Folks Finance is inspired by the company’s mission to bring decentralized financial services to the masses. It welcomes wallets of all sizes and plans to make the protocol accessible worldwide. The protocol offers a user-friendly and straightforward interface that allows crypto novices to benefit from the platform.

Folks Finance leverages Algorand’s fixed, low-cost and fast transaction capabilities. It also leverages the Algorand Virtual Machine (AVM) to create a financial business model that helps ensure the commercial viability of the protocol.

pact

category: DEX

Daily Users: Not available

Daily Transaction Value: $206,000

Locked Total Value (TVL): $7.3M

Pact describes itself as a mobile-centric trading experience. It offers low transaction fees, high liquidity and access to smart contract features. Through its smart contract functionality, Pact transactions are available to participants of all levels of experience and wealth.

Pact is backed by key strategic partnerships and has been able to build a technically mature platform from the ground up thanks to Algorand’s Pure Proof-of-Stake mechanism. Block checking is selected at random, ensuring the integrity of every user transaction made on the platform.

Pact is also committed to creating an environmentally friendly platform and fully supports Algorand’s environmental emissions initiatives aimed at creating a carbon negative platform.

Modest DeFi

category: DEX

Daily Users: 394

Daily Transaction Value: $327,800

Locked Total Value (TVL): $4.74M

Humble DeFi describes itself as a one-stop DeFi suite. Its first product, HumbleSwap, is an automated market maker (AMM)-style exchange that allows users to swap assets, pool them, and earn with Algorand stakes. In the future, users will be able to earn income by participating in Humble DeFi income farms.

Once fully operational, Humble will reportedly offer a wide range of features, including yield farming, liquidity mining, a DEX, derivatives, stablecoin pools, cross-chain functionality, a customer support helpdesk, and more.

Recently, Humble received 2 million ALGOs from the Aeneas Fund to help grow its overall value backed by rewarding early adopters. These ALGOs are distributed by farming and liquidity mining ALGO/USDC ALGO/ASA liquidity pools. Therefore, there should be many ways to earn on Humble in the future.

GARD protocol

Category: Liquid staking

Daily Users: Not available

Daily Transaction Value: Not available

Locked Total Value (TVL): $1.76M

The GARD Protocol is a lending protocol on Algorand that leverages Collateralized Debt Positions (CDP) to mint the protocol’s native stablecoin, GARD. Known as “GARdians,” users must lock their ALGOs in a smart contract to earn GARD. GARdians can also vote directly through the GARD Protocol.

GARD is an over-collateralized algorithmic stablecoin. This means it takes $1.40 worth of ALGO to support 1 GARD or 140% of the value.

Once ALGO is locked, users can mint GARD and the CDP will automatically set a liquidation threshold of 115%. If a user falls below this threshold, part of their position will be liquidated and included in an auction. This is how GARD hopes to remain pegged to the US dollar.

The GARD protocol is working to implement a DAO structure where GARdians will be able to leverage governance tokens known as GAIN. GAIN holders can vote on various items such as: B. feature updates and fee revisions, while receiving a portion of the revenue of the protocol.

yielding

category: yield

Daily Users: 615

Daily Transaction Value: $0.45

Locked Total Value (TVL): $433,000

Yieldly was the world’s first connected and borderless DeFi platform built and designed on Algorand. In addition, Yieldly built the first DeFi smart contracts native to Algorand. Bringing the power of DeFi to Algorand, Yieldly enables users to pool, trade and stake ASA assets.

Yieldly brings Algorand interoperability with mission-critical infrastructure with the world’s first bridge solution. With Yieldly, ASA tokens can be easily moved between all major protocols, including Algorand. The first use case for this is a bridge from Algorand to Ethereum, enabling near-instant, low-cost token swaps between the two ecosystems.

Yieldly supports the growth of developers on Algorand’s low-cost and high-performance blockchain infrastructure. It is a platform where innovative ASA-based projects can access users and liquidity, accelerate adoption and accelerate development.

Investor Takeaway

There are currently around 700 companies building projects on Algorand. Algorand has differentiated itself from other blockchains with its Pure Proof of Stake model by offering low fees, robust security and fast transaction speeds.

However, the best Algorand projects are essentially clones of similar services on Ethereum. For Algorand to become a Tier 1 contender, it must look for unique “killer apps” that leverage Algorand’s technology: apps that couldn’t be copied to Ethereum.

Our thesis is that investing in ALGO is like buying “stock” in the “company” Algorand. We currently do not hold ALGO in any of our Future Winners portfolios.

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