By coupling decentralized finance with real estate—the largest asset class in the world—the two Algorand-based companies have made possible a novel, tangible use case for DeFi.
MIAMI, March 16, 2022 /PRNewswire/ -- Algofi and Lofty, two companies backed by the Y Combinator accelerator, have partnered to enable people to use $STBL, Algofi's stablecoin, as collateral to buy fractions of investment properties. $STBL is the first native stablecoin on the Algorand blockchain.
Algofi is a decentralized lending protocol and stablecoin built on the Algorand blockchain. Lofty is the largest tokenized real estate marketplace where you can invest in tokenized real estate for only $50 and sell anytime.
This is the first time in history that people can seamlessly use cryptocurrency as collateral to buy tokens that represent ownership in real investment properties. This is not only a monumental development in the Algorand blockchain ecosystem, on which both Algofi and Lofty are built, but it is also a game-changer for the broader world of cryptocurrency.
This partnership provides a long awaited, tangible use case for DeFi by coupling it with the largest asset class in the world – real estate. It is also the first time that $STBL grows beyond its DeFi native roots. Lastly, it makes it easier than ever for crypto natives to adopt a barbell strategy that offsets crypto volatility and builds wealth.
"Algofi is excited to see continued growth in the adoption and utility of STBL, the protocol's decentralized stablecoin. With this exciting partnership, users will be able to leverage their cryptocurrency as collateral to invest in real estate offered by Lofty" - Owen Colegrove, Core Developer at Algofi.
"This partnership is huge for the entire crypto community because it's the first time in history that people can use crypto as collateral to buy real investment properties. The future is here." - Max Ball, COO at Lofty
To learn more about how to acquire $STBL and how to use it to buy real estate with Lofty, visit: https://www.lofty.ai/blog/now-use-crypto-as-collateral-to-buy-investment-properties
Algofi is the DeFi hub of the Algorand blockchain. Algofi offers a lending protocol, automated market maker, and stablecoin integrated in one seamless user experience. Algofi is planning to offer traditional banking services like savings accounts and credit cards that will be powered by Algorand's growing DeFi ecosystem. Investors include Union Square Ventures, Arrington XRP Capital, and Pillar VC. To learn more, visit www.algofi.org.
Lofty lets people invest in tokenized investment properties for only $50. Investors get daily rental income, and tokens can be sold anytime for no penalties or fees. Lofty has raised over $5M in total funding and is backed by leading investors including Y Combinator, Rebel Fund, Jason Calacanis, Hustle Fund, and more.
Algorand is building the technology to power the Future of Finance (FutureFi), the convergence of traditional and decentralized models into a unified system that is inclusive, frictionless, and secure. Founded by Turing Award-winning cryptographer Silvio Micali, Algorand developed a blockchain infrastructure that offers the interoperability and capacity to handle the volume of transactions needed for defi, financial institutions and governments to smoothly transition into FutureFi. The technology of choice for more than 500 global organizations, Algorand is enabling the simple creation of next generation financial products, protocols and exchange of value. For more information, visit www.algorand.com.