Alpha Finance is an ambitious DeFi platform with venture capital backed developers who are building innovative DeFi products right now to maximize revenue for users. Alpha DeFi products increase profitability for users, close market gaps, solve problems, and engage the general public in DeFi.
1. What is Alpha Finance?
Alpha Finance, abbreviated as Alpha, is a cross-platform DeFi platform building interoperable, high-yield DeFi products on Ethereum and Binance Smart Chain (BSC).
In order to ensure cross-chain interoperability, not only digital assets in the Ethereum ecosystem can migrate to Alpha DeFi products, but digital assets held on the centralized Binance exchange can easily be transferred to DeFi products built on BSC. This enables a continuous flow of digital assets not only across various blockchains, but also through the largest centralized exchange.
Thus, Alpha Finance’s interoperability is ultimately intended to accommodate a wider audience for DeFi as well.
Alpha’s DeFi ecosystem is focused on meeting the unrealized demand for DeFi in an innovative and user-friendly way. Each Alpha product is focused on solving problems and bridging market gaps in the sector in which the product is located.
Alpha DeFi products are currently built on Ethereum and are focused on maximizing profitability through high APYs made possible by leverage and automatic interest accrual. In addition, all Alpha products will interact with each other like Lego DeFi to maximize user experience while offering solutions to minimize negative impact / risk.
2. Who created Alpha Finance and when?
Alpha Finance was founded by Tascha Punyaneramitdee and launched in July 2020 following a public token sale on Binance Launchpad.
Tasha is currently the Project Manager at Alpha Finance and will remain in that role until the project is sufficiently decentralized.
Prior to Alpha, Tasha began her career in investment banking at Jefferies in San Francisco and later in London. She later went to work at Tencent in Thailand as a Product Manager and then entered the blockchain space as Head of Strategy at Band Protocol.
Tasha has been joined in her lead role at Alpha Finance by Nipun Pitimanaaree, who is the lead engineer for Alpha Blockchain.
Nipun is a highly educated individual with an MSc in Electrical and Computer Science and a BS in Mathematics and Computer Science from the Massachusetts Institute of Technology. In addition, he is currently ranked 3rd in the International Mathematical Olympiad Hall of Fame (Global Ranking). Prior to Alpha Finance, Nipun was well known for developing several successful automated stock and cryptocurrency trading algorithms, as well as his role as Principal Investigator at OZT Robotics.
In addition to Tasha and Nipun as project leaders, Alpha Finance has a team of at least 7 people, according to their official Linkedin page.
3. What is the ALPHA token used for?
The proprietary cryptocurrency of the Alpha Finance ecosystem of products and protocols is ALPHA, an ERC-20 and BSC compliant token.
ALPHA tokens are mainly used as management and utility tokens for Alpha Finance products, including the Alpha Homora protocol and future Alpha products. Many of the utilities available with ALPHA have yet to be implemented, and Alpha Finance is learning from the most successful DeFi projects such as Uniswap, Compound, and AAVE.
ALPHA token usage scenarios:
- Management – voting rights at the product level and at the Alpha Finance level;
- Usefulness – staking, commission discounts, rewards and various incentive mechanisms.
Control… Alpha Finance implements a two-tier management structure: the product level and the Alpha Finance level.
Product-level governance allows ALPHA token holders to manage various metrics specific to each Alpha product.
Alpha Finance-level governance allows ALPHA token holders to vote on the interactions of the Alpha product ecosystem.
Usefulness (not yet implemented)… ALPHA will be used as a service / work / interoperability token for a wide range of Alpha DeFi product use cases. Some of these use cases include, but are not limited to:
- Providing liquidity for Alpha products;
- Staking to receive a percentage of the protocol commission;
- Providing exclusive access to additional features of Alpha products;
- Acts as the primary interaction token to enhance Alpha product compatibility
Overall, the ALPHA token will play an important role in using, earning and managing the growing ecosystem of Alpha Finance products. As the ecosystem grows, both the use and demand for ALPHA will grow.
4. What is Alpha Homora?
Alpha Homora is based on the Ethereum DeFi protocol and serves to boost your position in crop growing pools.
With Alpha Homora, Alpha Finance remains true to its spirit by offering innovative products that solve problems and fill market gaps.
This is why Alpha Homora is the first leveraged profit and liquidity protocol launched on the Ethereum mainnet.
For the first time in history, DeFi can deliver even higher yields than is currently possible through the use of leveraged positions in growing crops.
In addition, ETH lenders can also earn high interest rates on their ETH. This is because farmers / liquidity providers borrow ETH to provide liquidity and must pay a higher than usual interest rate to do so.
Thus, by introducing leverage into profitable farming, farmers can earn higher APYs and trading commissions by taking up leveraged crop yields positions, and then ETH lenders also benefit from high interest rates on their ETH.
How is Alpha Homora different?
First of all, Alpha Homora introduced leverage for liquidity mining. No one has done this yet, thus opening up a host of unique use cases that cannot be found anywhere else in DeFi.
You can use Alpha Homora in the following ways:
- Leveraged liquidity mining (only on Homora);
- Regular liquidity mining, no leverage;
- Provide liquidity with leverage (Homora only)
- Provide liquidity as usual without leverage
- Borrow ETH to get maximum APY loan for ETH (Homora only)
In addition, the Alpha Homora Auto Grow Protocol has unique features such as waste minimization / gas saving functions, optimal exchange function and auto reinvestment function.
That said, whether you want to grow a leveraged crop or not, Alpha Homora offers many innovative and convenient options and features that stand out from competing protocols.
5. What is ibETH?
ibETH is a percentage derivative of ETH. When users deposit ETH into Alpha Homora Bank, they receive a prorated amount of the ibETH token. ibETH can be traded on the open market and is an interest-bearing asset that represents the shares of ETH in the pool of Homora Bank.
When users borrow ETH on Alpha Homora, they pay interest, which is distributed among the ETH lenders in the form of ibETH, in proportion to the amount of ETH they lend.
Interest payments to borrowers are based on a triangular interest rate curve based on the use of ETH:
- With a utilization rate of 0-50%, the interest rate on the loan will be fixed at 10%.
- With a utilization rate of 50-95%, the interest rate on the loan increases linearly to 25%.
- With a utilization rate of 95-100%, the interest rate on the loan increases linearly to 100%.
In addition, 10% of the borrower’s interest is held in reserves at Alpha Homora Bank and can be used as an insurance fund to assist lenders in the event of an unforeseen scenario.
6. Where does the high APY come from?
As you can see from the graph above, Alpha Homora’s total locked value (TVL) has grown exponentially since its inception and is now valued at more than $ 1 billion.
But why is it so? How does Alpha Homora grow its TVL so quickly?
Alpha Homora has high APYs, and high APYs are a magnet for liquidity.
Alpha Homora manages to achieve some of the highest APYs in the industry through the following methods and techniques:
Compounding (compound interest). All received ALPHA tokens are reinvested and accumulated every day to get higher APYs. Compounding offers higher profit potential in a completely passive manner.
“Compound interest is the 8th wonder of the world. The one who understands this earns; the one who does not understand pays ”. – Albert Einstein
Leverage… All pools in the Yield Farming Pools section support over 1x leverage + APY trading fees per leverage. The more leverage you use, the higher the APY can be.
All pools in the Liquidity Provision section that support more than 1x leverage return high APY, which comes from APY trading fees per leverage.
Extraction of trade volume… If you have ALPHA and / or (ETH or ibETH) and use them to provide liquidity to the ibETH / ALPHA pool via Alpha Homora or directly on Uniswap, you can earn ALPHA tokens and high APY trading fees.
7. Where to store ALPHA?
Alpha Finance (ALPHA) can be stored as an ERC-20 token in any Ethereum-based wallet, or as a BEP-20 token in any wallet supported by the Binance Smart Chain (BSC).
When working with ALPHA, you need to know what token you have in order to send it to the correct address and store it in the correct wallet.
The best ALPHA storage wallets are non-storage Web3 wallets that provide seamless access to the best DeFi apps like Alpha Homora, 1inch Exchange, Uniswap, etc.
However, since Ethereum has the largest DeFi ecosystem, it is recommended to use the ALPHA ERC-20 version as it is fully supported in the Ethereum-DeFi ecosystem.