Alpha Homora is Alpha Finance Lab’s first product and DeFi’s first leveraged yield farming product.
Since we have launched Alpha Homorain October 2020 on Ethereum, the product has reached significant usage and adoption such that we find the need to build Alpha Homora v2 on Ethereum. Through a number of unique and useful functionalities built-in on Alpha Homora v2, the product will further establish itself as the go-to leveraged yield farming/leveraged liquidity providing protocol in DeFi.
Alpha Homora V2 is a leveraged yield farming and leveraged liquidity providing protocol.
Lenders can lend many assets, e.g. ETH, USDT, USDC, DAI, and more, to earn high lending interest rate. The lending interest rate comes from leveraged yield farmers/liquidity providers borrowing these assets to yield farm/provide liquidity.
Yield farmers can get even higher 1) farming APY and 2) trading fees APY from taking on leveraged yield farming positions. By taking on leverage, Alpha Homora would borrow the specified assets on behalf of the users to yield farm.
Liquidity providers can get even higher trading fees APY from taking on leveraged liquidity providing positions. By taking on leverage, Alpha Homora would borrow the specified assets on behalf of the users to provide liquidity.
Liquidators can earn 5% bounty by liquidating positions that are at 100% debt ratio.
What problems does Alpha Homora solve? What are the unaddressed demand or market gaps?
Alpha Homora V1 was built based on the market gaps that we spotted below.
Market gap 1: There are many ETH holders bearing low lending interest rate on ETH. (This is why lending and borrowing in Alpha Homora V1 was limited to only ETH. However, Alpha Homora V2 has expanded on this to support lending and borrowing of more assets in addition to ETH.)
Market gap 2: There are many yield farmers searching for higher yield farming APY. (Alpha Homora V2 also has expanded on this by supporting Curve, Balancer, SushiSwap, and Uniswap AMM protocols. Alpha Homora V1 only supported SushiSwap and Uniswap.)
Market gap 3: There continues to be more projects that want to bootstrap liquidity in their pool on a selected AMM protocol, giving rise to more yield farming opportunities.