The Ally for Algorand team and community is dedicated to increasing the usefulness and value of ALGO. Our initial goal is to package ALGO as collateral for yield pools, loans, stablecoins, and other synthetics.
When ALGO is used as collateral, the demand for ALGO increases thus creating pressure to increase the value of ALGO.
The ALLY protocol allows ALGO holders to create wrapped ALGOs (or wALGOs), a liquid stakes version of ALGO. wALGO is designed to be great collateral:
It earns governance rewards. wALGO increases in ALGO price as it earns governance rewards. The extra yield from governance rewards makes holding ALGO collateral more profitable, and it makes Algorand DeFi more competitive.
It is accessible. wALGO is available for any protocol accepts ASA collateral, and for any user that wants to earn governance rewards on demand.
You can mint it at any time by buying wALGO with ALGO. We can make up missing governance yield with some of our own rewards.
It is perpetual. You can redeem to ALGO, but you can also stay invested and stay stacked for years.
It can be sold or liquidated within 3% of the underlying ALGO value. This is important if we are going to use it as collateral. Many protocols have the right to liquidate (sell) collateral. If wALGO AMM pools become saturated, wALGO can convert to ALGO.
We can also improve Algorand with activist governance that will drive ALGO value. We will develop governance proposals in our Discord, test them with Snapshot votes, and then vote AS ONE BLOCK to maximize impact.