The central value loop in Alf is between risk-averse investors (providing the bulk of capital into the “safe” capital deployment strategies) and risk-seeking investors (borrowing capital to enter higher risk leveraged yield farming positions).
To that effect, protocol pools accept liquidity to utilize in the baseline protocols (lending solution and AMM solution). The unused liquidity is utilized in the leveraged position module that connects to external protocols.
Alf also taps into other stakeholder groups and the wider economics of Solana ecosystem: it provides strategies for arbitrageurs (to liquidate leveraged positions if they receive a margin call) and facilitates trading on Solana DEXes by providing liquidity, both through its own internal solution (AlfMM) and as leveraged LP in the protocols Alf supports.
The relationship between the stakeholder groups is illustrated below: