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What is Alpha Finance Lab?

Alpha Finance Lab is a multi-chain DeFi platform focused on building an ecosystem of interoperable products and transferring ALPHA to users on different blockchains. The project started with Binance Smart Chain (BSC) and Ethereum.

The ALPHA token is the platform’s native utility token. Token holders can earn a portion of the network fees by staking ALPHA. Not only that, users can also use ALPHA for the purpose of mining liquidity and voting for governance.

Alpha Lending, one of the first, was produced as a decentralized lending protocol. Users can profit by providing assets supported by the protocol. The assets deposited by the lender will be transferred to a smart contract that aggregates the liquidity of each asset into a common fund. Borrowers can use this fund as it is always available to them. The interest payable by the borrower is allocated proportionally to the liquidity providers for the loan.

What problem does Alpha Finance Lab solve?

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There are 2 things this platform wants to fix, which are:

  • The majority of DeFi products are built on top of Ethereum. This has resulted in limited development of DeFi protocols due to Ethereum’s widely known scalability difficulties. It also prevents DeFi users from accessing the benefits of other popular blockchain networks with low fees.
  • Another dilemma for DeFi is the low liquidity on decentralized exchanges. This leads to higher price volatility on the DEX. It prevents many new users from choosing a decentralized exchange over a centralized exchange.

Alpha Finance Lab aims to solve these problems by bridging the gap between the products and solutions that DeFi users want and what is currently available in the market. Essentially, they are building an ecosystem of DeFi products that will work in sync to maximize profits for their users while minimizing the negative impact. Their DeFi products will also attract new users by eliminating common problems in DeFi, which will improve DeFi adoption rates.

Products of Alpha Finance Lab

Alpha Lending

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Alpha Lending is a pool-based decentralized lending protocol. With Alpha Lending, you can become a lender and also borrow from its general fund.

To become a lender on Alpha Lending, you must deposit assets supported by the protocol, which are then deposited into a smart contract showing the total amount of liquidity available for the assets in the pooled funds. After depositing the supported assets, you will receive an interest-bearing token equal to the amount of the supported cryptocurrency you deposited into the Alpha Lending protocol.

If you want to borrow from the liquidity pool, you will have to deposit collateral such as BNB and other backed assets. The amount you can borrow from the protocol depends on the loan-to-value (LTV) ratio of the collateral. LTV rates vary according to the type of collateral you choose. For example, BNB has an LTV ratio of 75%. This means that if you deposit BNB as collateral, you will get 75% of the present value of the BNB fund you deposited as a loan.

Alpha Homora

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There are two versions of Alpha Homora. These include Alpha Homora V1 and Alpha Homora V2. On both the Ethereum blockchain and the Binance Smart Chain, Alpha Homora V1 is available. Alpha Homora is the first Ethereum-based product offering DeFi users the ability to utilize leveraged positions in productive farming.

Alpha Homora is an innovative product from Alpha Finance Lab. It gives an opportunity for both Ethereum and BNB lenders to earn higher interest. It also allows productive farmers to receive more productive farming rewards using leveraged slots in productive farming.

Extending the utility of Alpha Homora V1, version V2 will be released on February 1, 2021. With Alpha Homora V2, users can utilize leveraged locations for productive farming on Uniswap, Balancer, Curve, and SushiSwap. It offers up to 9X leverage on multiple asset classes, including ETH and stablecoins.

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It will allow users to protect their productive farming positions. AlphaX is inspired by Uniswap and makes it easy for DeFi users to permanently interact through its user-friendly interface. Users can execute both long and short positions using AlphaX.

It is a non-custodial platform, and as such, users do not have to go through a KYC process to start using AlphaX. The concept of perpetual trading is a bit complicated for novice traders, a large group of users that Alpha Finance Lab targets through AlphaX.

To simplify perpetual swaps, AlphaX combines both funding rates and prices. This way, the user doesn’t have to remember the rate. Rates are adjusted automatically by factoring them into the price of the underlying asset. As a result, both short and long-term traders do not have to constantly fund their positions.

The combination of AlphaX and Alpha Homora is the perfect example of synergy between DeFi products from Alpha Finance Lab. With Alpha Homora, you can maximize your profits. whereas with AlphaX, you can reduce the risk.

Token Alpha Finance Lab (Alpha)

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Information about the ALPHA Token:

Token Name: ALPHA Token.

Ticker: ALPHA.

Blockchain: Binance Smart Chain & Ethereum.

Contract: 0xa1faa113cbe53436df28ff0aee54275c13b40975

Type of token: Governance + Utility.

Token Standards: BEP-20 & ERC-20

ALPHA total supply: 1,000,000,000

ALPHA circulating supply: 351,004,126

The ALPHA token has three uses. The first use case is in the management of the Alpha Finance lab. Every token holder will have a number of votes corresponding to the number of ALPHA tokens they own. They can exercise their votes on important aspects related to Alpha Finance Lab products.

The second use case is a utility token. It will allow token holders to receive staking rewards by staking or earn a portion of network fees by providing liquidity. With the ALPHA token, users can also unlock additional functions on products from Alpha Finance Lab. This is its third use case.

Where is Alpha Finance Lab (ALPHA) stored?

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If you want to make a big investment in Alpha or if you are planning to HODLize this cryptocurrency in the long run, then using hardware wallets is the best choice. Hardware wallets keep your cryptocurrencies offline in “cold storage”. This strategy keeps online threats from reaching your holdings. The more advanced Ledger Nano S or Ledger Nano X, both support Alpha Finance Lab (ALPHA).

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