Defly Guide: How to Commit to Governance
Learn how to commit to Governance across all partners directly through Defly!
Welcome back to the Club, gov!
Governance period #5 is upon us and registration is open through 10/14, so make sure you commit your ALGOs.
And with Defly’s latest update, you can now commit to Governance across the Algorand Foundation, Folks Finance, Algofi, and GARD directly through their app.
This latest update improves the overall Algorand user experience allowing users to seamlessly commit to Governance across multiple partners quicker than ever.
Keep reading to learn how.
Navigating to Governance
Navigate to “More” and select “Algorand Governance” to begin:
You can choose to commit to Governance through the Algorand Foundation, Folks Finance, Algofi, and GARD.
Let’s review each one.
Algorand Foundation: Governance Portal
Governance empowers all ALGO holders to participate in the decision making process of the Algorand ecosystem by voting on key issues. To participate and receive rewards, you must commit to maintaining a predetermined minimum ALGO balance (decided by the holder) in your wallet and voting on key issues provided by the Algorand Foundation through their Governance portal.
Gov Tip: Learn more about Governance in our Algorand Governance: Beginners Guide.
Select “Official” to commit to Governance through the Foundation:
This Governance period, you can commit both ALGO and eligible liquidity pool tokens (LPTs) to earn rewards.
To commit ALGO, select the ALGO icon and input the amount you’d like to commit. Once complete, select “Set amount” and swipe to confirm the transaction:
To commit a liquidity pool position, select the eligible LPTs you want to commit, input the desired amount, and swipe to confirm the transaction:
Folks Finance: Liquid Governance
Governors who commit their ALGOs to Governance through Folks Finance will receive a new asset named “gALGO” – which is pegged to the value of ALGO – in a 1:1 ratio. gALGO can be deposited, leveraged as collateral, or used as a form of payment across the Algorand ecosystems.
Gov Tip: Check out the Liquid Governance section in our Folks Finance Definitive Guide to learn more.
To commit through Folks Finance’s Liquid Governance feature, select “Folks Finance gALGO”:
You can commit ALGO and mint gALGO by selecting the ALGO icon and inputting the amount you’d like to commit. Once complete, select “Set amount” and swipe to confirm the transaction.
Algofi: Governance Vault
Algofi’s Vault unlocks users’ Governance stakes through the protocol’s lending protocol. When a user supplies ALGOs to their Vault, Algofi creates and provides them with a new asset named “Vaulted ALGOs” or “vALGOs” which has the same price and collateral factor as ALGOs.
Put simply, Algofi’s vault allows you to take a collateralized position against your Governance position.
Gov Tip: Check out our Definitive Algofi Vault Guide to learn more.
To commit through Algofi’s Vault, select “Algofi Vault V2”:
Commit ALGO by selecting the ALGO icon and inputting the amount you’d like to commit. Once complete, swipe to confirm the transaction.
GARD: Collateralized Debt Position
Similar to Algofi’s Vault, the GARD Protocol is a lending protocol that uses collateralized debt positions (CDP) to mint GARD, the protocol’s native stablecoin. Governors need to lock their ALGOs in a smart contract to mint GARD while voting on key Governance issues to claim their rewards.
Gov Tip: Check out GARD Protocol Explained to learn more.
Unlike the other options mentioned above, GARD isn’t integrated directly into Defly yet.
To commit through GARD, navigate to “GARD” and select “Open Gard dApp”:
This will take you directly to the GARD Protocol to commit to Governance.
And that’s it. You now know how to commit to Governance across all partners directly through the Defly app.
If you need any further help navigating the app, make sure you check out their official manual, created in partnership between the Club and Defly.
See you around, gov.