Why holding ALGO in 2024
Whether you are a long time Algo believer or simply a blockchain enthusiast, thanks to its fast, low-cost, near-instant finality and advanced security Algorand already convinced some big companies and is moving towards global adoption:
- Healthcare data management in Bermuda, India, and maybe Panama;
- bank and insurance digital guarantees platform in Italy;
- everyday payment in Afghanistan;
- real-world assets: Agrotoken with Visa, airplane tickets, precious metal, rental real-estate.
Independently of short-time price consideration, holding ALGO in 2024 looks like an attractive option. What's even better than holding is putting your bag to work and make it grow in DeFi. What's good is that DeFi distributes massive rewards to users at the moment, and as the largest DeFi Hub atm Folks Finance is the place to go.
Liquid Governance Strategies
The Algorand Foundation rewards users who participate in Governance. Folks offers a Liquid Governance options that gives users an increased APR while allowing to keep their stake liquid, and use it in DeFi. You can simply keep your gALGO (your liquid ALGO derivative) until the end of givernance for immediate profit. For increased earnings pair gALGO with your Asset of choice in Liquidity Pools that are also incentivised on Pact, Tinyman, or Humble. What's nice is that if your LP tokens contains ALGO you can also earn Governance Rewards from them. A classic and safe strategy is : deposit roughly half of your ALGO to gALGO; deposit in a ALGO/gALGO LP; commit LP to governance. You earn: Governance Rewards from gALGO, Governance Rewards from LP, Swap Fees, and Farming Rewards.
Folks also offers a Leveraged Governance option when you deposit gALGO to borrow more ALGO that you deposit to gALGO and loop up to 4x. While liquidation risk is almost inexistent, the APR might be negative if the borrow rate climbs up to high (was the case last Governance Period).
Lending Pools Strategies
If you missed the Governance commitment windows, or don't want to be in Governance, Folks offers another great options: Lending Pools. By depositing in a Lending Pool on Pact or Tinyman, you lend a pair of assets and provide liquidity at the same time. Earning fees from both swaps and borrowing. Moreover, Folks offers interesting Farming Rewards during the Governance Period.
Arbitrage Strategies
At the end of Governance, you can always redeem 1 gALGO for 1 ALGO. However, during the governance period, liquidity is only via swaps on DEX. Thus, the price can become unbalanced. If the price dips, buying gALGO at a discount and redeeming it at the end of Governance can be a very profitable operation. These arbitrage operations can also be performed cross-chain on Avalanche on TraderJoe and BSC on Pancakeswap thanks to the xALGO (cross-chain Algo).
Advanced Trading Strategies
All the above strategies are relatively safe and open to everyone. For more experienced traders, Folks also leveraged Trading via Ultraswap. This allows to people to take short-term long or short positions with multipliers, on ALGO but also BTC and ETH. Such strategies are only recommended for users who fully understand the potential risks and rewards but can be very profitable.
