Algofi - Exchange Review

First look

Algofi launched in 2021 as a one-stop DeFi suite on Algorand. It combines lending, stablecoin minting, governance and a decentralized exchange. On paper it loaded fast, with low fees and Algorand scalability. Yet real usage - especially in swapping - is minimal.

Under the hood

The core protocol features loans, an AMM and STBL stablecoin. Governance runs via BANK token airdrops and a DAO structure. A vault integrates Algorand on-chain voting with DeFi capital.

TVL on the platform sits around 1.2 million dollars. Swap volume on the Algofi DEX is effectively zero over 24 hours - or even measured periods. Cumulative DEX volume across the protocol is negligible.

What users see

You connect a wallet - like Pera or MyAlgo - and you can lend, borrow, swap, even mint STBL. No signup. Accountless DeFi. But without liquidity, swaps don’t fill, rates stay flat, and farming yields stay low. No buzz. No liquidity depth.

Market context

Algofi raised a few million in seed funding. Trading on Tinyman and other Algorand DEXs delivers more action than Algofi’s own exchange. Its swap feature is overshadowed by programs like Tinyman or Pact.

BANK token currently lacks liquidity and market cap is small - well below mainstream levels. Most of the platform’s activity centers around lending and governance, not swapping.

Risks and governance

Pressure on Algorand’s token supply and emissions could weaken economics. Governance turnout is mixed. As with all smart contract systems, bugs are immutable. Legal structure is vague, with no formal licensing across jurisdictions.

Quick snapshot

Parameter	Status
Core services	Lending, stablecoin, AMM, governance
Token	BANK (governance, airdrop-based incentives)
TVL	~$1.2 million
Swap volume (DEX)	~0 over 24h
Cumulative volume	Minimal
User traction	Very low swap engagement
Governance	Exists, DAO-style, limited turnout
Risk layer	Capital - legal - smart-contract risk

Final notes

Algofi is more infrastructure than active venue. Its value sits in lending and governance on Algorand - swapping functionality remains underdeveloped. The DEX part is real, but no one uses it.

If you seek a live swap platform, Algofi is not it. For governance or lending aligned with Algorand, it has some potential. But don’t expect on-chain volume or deep market flow yet.

Until liquidity picks up, withdrawals move freely and governance engages, Algofi’s DEX is a concept waiting for users - not a functioning exchange.