Leveraged yield farming and liquidity provision, up to 200x leverage

Leveraged yield farming and liquidity provision, up to 200x leverage

Alf is a protocol for capital deployment on Solana for the purposes of liquidity provision and yield farming, both with and without margin of up to 200x. The protocol introduces its own versions of an invariant-based Automated Market Maker protocol for exchange operations and a money market for short-term loans. The central contribution to the Solana ecosystem is a protocol for leveraged LP positions in AMM pools and yield farming protocols. Alf improves capital efficiency and facilitates more liquid markets by con- necting low-risk, low-effort investors providing liquidity to lending protocols with risk-seeking, active management investors who focus on leveraged liquidity pro- vision and yield farming positions.

Figure 1: Cross-protocol liquidity facilitation by Alf.

At the core lies the protocol for leveraged liquidity provision into AMMs and yield farming. Complementary to that, Alf offers two protocols for unleveraged liquidity management: AlfMM (a decentralized exchange service) and AAlf (an overcollateral- ized borrowing service). The core purpose of both protocols is to provide entry points for traders and risk-averse investors, offering them a platform to trade and provide liq- uidity, all the while reining in an additional revenue from indirectly providing liquidity to the Leverage Protocol.

Alf Leverage Protocol enables users to enter leveraged positions in various types of assets. The two primary uses that the Alf team envisions for the protocol initially are leveraged long/short positions and leveraged LP yield farming.