Azolla is used as a biofertilizer because it

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The leaves of Azolla (fern) have as many as $80,000$ blue-green algae belonging to Anabaena azollae, which have the capacity to fix atmospheric nitrog

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Has association of nitrogen-fixing cyanobacteria

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The leaves of Azolla (fern) have as many as $80,000$ blue-green algae belonging to Anabaena azollae, which have the capacity to fix atmospheric nitrogen and make it available to Azolla. Azollapinnata is an excellent biofertilizer for rice. Farmers may have reported $50\, \%$ increase in yield of rice by using this biofertilizer.

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