Leveraged yield farming and liquidity provision, up to 200x leverage
Lightning-fast liquidations protecting the protocol LPs
Lower margin requirements without sacrificing security of the liquidity providers
Dynamic rates on leverage optimize capital efficiency for all participants
There are four sources of yield in Alf:
All of the components are fairly standard and represent well-known primitives:
- Liquidity pools
- Lending module
- Constant-product AMM
- DAO contracts
The future-proof flexibility is achieved by uncoupling the key components through standardized interfaces that allow enabling and disabling modules at discretion of the team and, later, the protocol DAO.
The basic risk framework of leveraged liquidity provision on AMMs is between trading volume (the amount of capital traded through the AMM pair within a time frame) and price movements (the maximal difference between quote prices on a given pair within a time frame).
Constant-product AMMs suffer from what is called impermanent loss,— a loss that liquidity providers make when the quote price diverges from the one when they entered their position. When prices diverge, impermanent loss starts to accrue, which is amplified with leverage for a leveraged position, until the position is exited, de-leveraged, or liquidated.
Another solution (offered by Alf) would be to shift the borrowed capital into other types of positions when the market is moving, or automatically exit the position before a loss can grow out of proportion. This is maintained through oracle connections (to monitor prices on external markets and compare them with the AMM prices) and a flexible pool of alternative strategies that the risk-seeking investors can subscribe to.
For select position types, Alf enables additional collateralization of leveraged positions with assets that are not entered into the position itself.
To provide margin, Alf borrows either LP tokens, or underlyings, of the targeted positions, primarily using its own internal liquidity pools (built by AlfMM and the lending solution). But in addition, Alf can tap into external liquidity of overcollateralized lending solutions (such as Solaris), offering the users to provide collateral in additional assets (that are used to collateralize these external borrowing positions).
Frequently Asked Questions
We choose Solana because of these few reasons:
1) It’s super fast and the transactions are super cheap.
2) We personally love seeing how quickly the whole ecosystem around the Solana is being built. A lot of great projects are choosing Solana, and Alfprotocol is one of them!
3) Solana is getting a lot of institutional attention, more and more developers are moving to the Solana blockchain which simply confirms, that Solana is a great place to build and grow the future projects of DeFi.
The whole team of the Alfprotocol holds over 12 years of combined experience in the financial markets & cryptocurrencies. Our CEO Matt comes from 8 years of financial markets trading, private capital management, and over 4 years of experience within the crypto space investments. Our CTO Gintautas holds over 10 years of blockchain architecture and development experience. Our marketing and community managers hold over 5 years of marketing and sales experience.
We are already seeing some fake emails being created with our name. These are the ONLY official emails that you can contact and the ONLY emails that are 100% legit:
General Questions & Partnerships: [email protected]
Media Related: [email protected]
Investments: [email protected]
Pre-IDO Token Distribution: [email protected]
Staking dAPp: [email protected]
Our Allotment ALF protocol is already live! Leveraged Yield Farming provision is already live in BETA!
Alfprotocol token ALF listing date is yet to be announced!