Liquidity Mining

Overview

Liquidity mining program on Alpha Homora v1 Ethereum is active. Please see details here: https://blog.alphafinance.io/announcing-new-liquidity-mining-period-for-alpha-homora-ethereum-bsc-2/

For more details on how to claim these rewards, please see here.

How to claim ALPHA rewards?

Accumulated ALPHA earned will be shown under your wallet address on Alpha Homora. Users will be able to claim ALPHA by clicking on your wallet address on Alpha Homora v2, then clicking claim. Note that claimable ALPHA (v1 + v2) will be available for users to claim on Alpha Homora V2 site only.

ALPHA rewards that have not been claimed will be accumulated and be available for users to claim later as well.

  • ALPHA earned from this new period (April 14th - April 28th) can now be claimed on Alpha Homora V2 site.

  • ALPHA earned from this new period (April 28th - May 12th) will be available for eligible users to claim by May 19th.

  • We will update our community again once rewards can be claimed.

How to open leveraged yield farming positions on Alpha Homora?

  1. Select yield farming pools that support more than 1x leverage.

2. Enter how many ETH or another token (or both) you want to use to farm, select leverage level that is more than 1x, then click farm. If you select ETH/DPI pool, another token here refers to DPI.

An example below shows ETH/DPI leveraged yield farming pool.

How to open leveraged liquidity providing positions on Alpha Homora?

  1. Select liquidity providing pools that support more than 1x leverage.

2. Enter how many ETH or another token (or both) you want to supply to liquidity pools, select leverage level that is more than 1x, then click farm. An example below shows ETH/YFI leveraged liquidity providing pool. Another token in this case refers to YFI if you select ETH/YFI pool.

How will ALPHA be distributed to eligible Alpha Homora users?

Eligible users will get ALPHA based on how many ETH they borrow proportionate to the total ETH borrowed from Alpha Homora.

What do eligible users gain and what are their risks?

🧙‍♂️ Leveraged yield farmers

Gains

  1. Earn ALPHA 💥

  2. Earn farmed token on leverage (e.g. SUSHI, INDEX, PICKLE)

  3. Farmed token earned is automatically reinvested and added to your yield farming position

  4. Earn trading fees on leverage for providing liquidity to pools

Risks

  1. Impermanent loss (same risk as other yield farming opportunities on AMM pools)

Since you are providing liquidity to Uniswap or Sushiswap by farming in these pools, you are exposed to impermanent loss risk.

2. ETH price going up can cause your position value to decrease when you open position with leverage of more than 1x

When opening a position with leverage of more than 1x, some of the ETH you borrow is being swapped to another token (sold to buy another token), so you have both assets in equal value to supply to liquidity providing pools.

Hence, by opening a position with leverage, you are effectively shorting some ETH. As a result, your position value can decrease when ETH price goes up and increase when ETH price goes down relative to another token (e.g. DPI for ETH/DPI pool)

🧙 Leveraged liquidity provider

Gains

  1. Earn ALPHA 💥

  2. Earn trading fees on leverage for providing liquidity to Uniswap or Sushiswap (for ETH/SUSHI pool)

Risks

  1. Impermanent loss (same risk as other yield farming opportunities on AMM pools)

Since you are providing liquidity to Uniswap or Sushiswap by using Alpha Homora, you are exposed to impermanent loss risk.

2. ETH price going up can cause your position value to decrease when you open position with leverage of more than 1x

When opening a position with leverage of more than 1x, some of the ETH you borrow is being swapped to another token (sold to buy another token), so you have both assets in equal value to supply to liquidity providing pools.

Hence, by opening a position with leverage, you are effectively shorting some ETH. As a result, your position value can decrease when ETH price goes up and increase when ETH price goes down relative to another token (e.g. DPI for ETH/DPI pool)

What does it mean to have both Liquidity Mining and Trading Volume Mining running at the same time?

Having both Liquidity Mining and Trading Volume Mining be running at the same time means that the weekly ALPHA rewards that you earn from Liquidity Mining from opening leveraged positions on Alpha Homora can be used to supply to ALPHA Pool (ibETH/ALPHA) on Alpha Homora and earn even more ALPHA from Trading Volume Mining. Learn more about Trading Volume Mining (Part 2B) here.