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FAQs
Frequently asked questions about the Algofi Vault.
Is the Algofi Vault audited?
When is the Algofi Vault live?
If I already have ALGOs in the ALGO market, how do I use the Algofi Vault?
The Algofi Vault is effectively a new market on the Algofi protocol that supports supplying and withdrawing ALGOs. It is unique to each user so the Vaulted ALGOs (vALGOs) in your Algofi Vault are your ALGOs only. Users cannot come and borrow ALGOs from your Vault.
To migrate ALGOs from the main ALGO market to your vault, you first withdraw your ALGOs from the main market. If you cannot withdraw your because you are borrowing against them, close out your borrow positions first. Then, withdraw your ALGOs. Finally, navigate to the Vault and add your ALGOs as shown in Supply ALGOs. Follow the rest of the tutorial to commit and vote in Governance.
How do I stay eligible for Governance Rewards?
To stay eligible, a user must maintain an ALGO balance in the Vault that is at least their commitment amount on each block during the Voting Period. A user must also vote via the Vault on each proposal during the Voting Period.
If a user borrows against their vaulted ALGOs (vALGOs), their vALGO balance could decrease if they are liquidated (a liquidator repays their loan and seizes ALGO collateral from their Vault). In this situation, a user could be rendered ineligible if the liquidator seizes enough ALGOs to bring their vault balance below their commitment amount. As such, users should maintain their collateral. Users could also leave a "buffer", supplying an amount of ALGOs to the vault but committing a smaller portion.
Do I need to borrow against my Vault?
No, you can participate in Algorand Foundation Governance via the Vault and earn your Governance Rewards without borrowing (so no liquidation risk). By participating thorough the Vault, you have the option of borrowing for the 3 month Voting Period. If you don't participate via the Vault, you will not have the option for the entire 3 month period. As such, there is value in participating in Governance via the Vault even if you don't necessarily expect to borrow against your ALGOs now.
How can I use Algofi while in the Vault?
Users of the Vault can borrow against their ALGOs in the Vault ("Vaulted ALGOs" or vALGOs). Navigate to the Lend page where you'll see vALGOs in your Supplied collateral. You can borrow STBL, USDC, goBTC, and goETH.
You can even borrow ALGOs from the main ALGO market against your vALGOs which has no liquidation risk. It is expected vALGO holders will borrow from the ALGO market and resupply into the Algofi Vault, driving the borrow interest rate of the ALGO market to ~ governance APR but with a liquidity discount since ALGO suppliers earn that rate continuously and can withdraw at any time without penalty.
Borrowing against your vALGOs introduces liquidation risk. Be mindful of your max borrow and borrow amounts during the Governance Voting Period.
What is the difference between Vaulted ALGOs and ALGOs on the Algofi Lending Protocol?
Vaulted ALGOs (vALGOs) are ALGOs users supply to their Vaults. These ALGOs can be committed and used to vote on issues in Algorand Foundation Governance. ALGOs on the other hand are supplied to the main ALGO market and cannot be committed in Governance. vALGO holders can borrow ALGOs from the main ALGO market. vALGOs, however, cannot be borrowed; they can only be used as collateral and borrowed against.
I participate in Governance through several wallets. How can I use the Algofi Vault?
If you would like to keep your ALGOs spread across several wallets, you can opt into the Algofi Lending Protocol with all of your wallets. Then supply ALGOs and commit to governance with all wallets following the same process as outlined in the Tutorial.
Will Aeneas Rewards be distributed for supplying ALGOs to the Algofi Vault?
That is not currently planned. However, users participating in the Vaults will earn Governance Rewards which currently have an APR of ~ 10%. See Algorand Stats for more information on Governance APR. Additionally, borrowing ALGO, STBL, USDC, goBTC, or goETH against your vALGOs will earn users Aeneas rewards.
Can I participate in consensus with my Vaulted ALGOs?
Yes, you can opt your ALGOs into Algorand's consensus protocol by registering your Algofi Vault online. You will not earn additional rewards for participating in consensus. Registering your Algofi Vault online is voluntary.
By registering your Vault online, you help secure the Algorand network. However, it is critically important that you follow the correct steps for registering your Vault outlined in the tutorial Participating in Consensus. Failure to do so can actually negatively impact network security.
Can I borrow vALGOs?
No, Vaulted ALGOs or vALGOs can only be supplied and removed by users. They can also be borrowed against in the Algofi Lending Protocol. Users cannot borrow vALGOs. The Vault was designed to prevent this since borrowing could bring a user's vaulted ALGO balance below their commitment level and render them ineligible for governance rewards.
Why is the app just a white screen?
There are some issues with the Algofi app that are still being worked on and improved. In some instances app.algofi.org loads to a blank white page for a given user. This is usually a result of stale data in that user's cache.
This is a hard problem for the Algofi team to robustly debug and fix as these issues are usually not replicable by the development team. That being said, Algofi continues to locate and remove possible sources of this issue. In turn, the frequency of occurrence continues to decrease.
Please clear your cache if you experience this issue and it should immediately resolve.
Last modified 1mo ago
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Contents
Is the Algofi Vault audited?
When is the Algofi Vault live?
If I already have ALGOs in the ALGO market, how do I use the Algofi Vault?
How do I stay eligible for Governance Rewards?
Do I need to borrow against my Vault?
How can I use Algofi while in the Vault?
What is the difference between Vaulted ALGOs and ALGOs on the Algofi Lending Protocol?
I participate in Governance through several wallets. How can I use the Algofi Vault?
Will Aeneas Rewards be distributed for supplying ALGOs to the Algofi Vault?
Can I participate in consensus with my Vaulted ALGOs?
Can I borrow vALGOs?
Why is the app just a white screen?