The leveraged yield farming protocol looks to put multiple missteps in the past with a successful relaunch.
How Alpha Homora v2 Will Boost Yield Farmes Gains
Via its Twitter handle Alpha Finance Lab has announced the relaunch of Alpha Homora in its second iteration. To be deployed on Ethereum, the team behind this DeFi protocol has called the event a “milestone towards our mission to build and incubate an innovative Alpha ecosystem”.
After the launch, Alpha Homora’s ecosystem could see an important rise in adoption and growth for the platform, as the official post claims. Also, there will be a new set of partnerships already in discussion, amongst them Polygon for integration with its second layer solution and multi-chain platform, more protocol fees for ALPHA holders.
Users of Alpha Homora will benefit immediately after the launch with new features. Yield farmers will be able to leverage more pools on decentralized exchanges (DEX) Uniswap and Sushiswap. As a bonus, protocols Curve and Balancer will offer more opportunities to maximize profits for yield farmers and liquidity providers. Both users will have leverage available, according to Alpha Finance Lab:
The scalable architecture of Alpha Homora V2 means the platform can accommodate more leveraged pools than Alpha Homora v1. Furthermore, these extra leveraged pools will include stablecoin-based pools and many more, meaning leveraged pools will no longer be just ETH-based.
In addition, Alpha Homora v2 will integrate more assets, besides ETH and stablecoins USDT and USDC, to yield farm, provide liquidity, and borrow. Alpha Finance Lab is yet to announce which assets specifically will be available. The team adds the following:
from the yield farming side, the relaunch of Alpha Homora V2 will allow leveraged yield farmers/liquidity providers to use LP tokens as collateral! The ‘Bring Your Own LP’ (BYOLP) tokens feature supports LP tokens from Uniswap V2, SushiSwap, Curve, and Balancer.
Alpha v2 will use base and derivatives tokens, offer lenders new opportunities to increase capital efficiency with ibTokensV2. The protocol will operate with an oracle aggregator contracts. Therefore, they will feed their platform with multiple trusted oracle providers. DeFiance Capital’s Wangarian said the following on Alpha Finance Lab new product and its benefits for the users:
Users can now maximize the potential that leveraged yield farming provides without obtaining unnecessary short exposure. I am confident that traction for Alpha’s products will regain momentum.
Alpha Homora’s Migration From v1 To v2
Upon its launch, the protocol’s second iteration will go through a migration process. In that way, the positions and liquidity in the first iteration will be moved to the new platform. Alpha Finance Lab claims there will be a “smooth” transition for users.
Finally, the new version of these products is expected to provide an “enhanced” experience, “improved” security, and other features. The products, according to the team, will capture the demand not met in the traditional financial system.
ETH is trading at $2.409,66 with a 3.6% profit in the daily chart. In the weekly chart, ETH has 4.6% profit and 34.6% in the past month.
This Ethereum protocol could deliver high yields
In the midst of the recent days’ downtrend, there are still open opportunities for profits in the Ethereum ecosystem. Alpha Finance Lab team has announced its tokenomics with staking rewards for its users and new products based on the Alpha Homora protocol:
ALPHA token holders will benefit from the growth of all Alpha products, which include Alpha Homora (vEthereum), Alpha Homora (vBSC), Alpha Homora (v2), AlphaX, and many more innovative Alpha products that we are working on. ALPHA token holders will be an integral part of the growing multi-chain, Alpha ecosystem.
APLHA token holders will be able to earn “ecosystem-wide rewards” based on the core Protocol. Users will also be able to receive rewards regardless of whether Alpha’s product operates on a Layer 1 or Layer 2 solution.
In the announcement, the Alpha Finance Labs team clarified that stakers will be able to unlock new features and earn more rewards with the different “tiers” they have enabled.
This is one of the very first times that tokenomics is directly integrated with the usage of the core underlying protocols.
Depending on the amount of ALPHA staked, the user will have access to new tiers that will give them access to earn fees from across the entire ecosystem.
ALPHA stakers will also serve as the backbone of the expanding Alpha ecosystem, as the funds staked will help secure the ecosystem in case additional insurance is needed.
Alpha Finance Lab is excited to announce that $ALPHA Tokenomics (staking and more) will be launching in the coming days! 🔥🔥
ALPHA tokenomics makes value accrual not limited to fees collection from the #Alpha ecosystem, but integral to the usage of the core Alpha protocols.
— Alpha Finance Lab (@AlphaFinanceLab) March 23, 2021
Interoperability with Ethereum and Binance Smart Chain
One of the benefits of Alpha Homora protocol’s native token is its interoperability in two major DeFi ecosystems. ALPHA is based on Ethereum’s ERC-20 standard and the Binance Smart Chain’s BEP-20 standard.
Without altering the overall supply of the token, The Alpha Finance Lab team enabled this option in response to the high demand ALPHA has seen. The announcement stated the following:
To meet demand for ALPHA (ERC-20) withdrawal from Binance, we’ll deposit 100M ALPHA (ERC-20) and withdraw 100M ALPHA (BEP-20) through Binance – main bridge between 2 token standards.
In response to the announcements, ALPHA has regained upward momentum and is trading near its all-time high at $2.08. On the one-day chart, ALPHA shows gains of 11.8% with a positive performance of 25.3% in the last week. Capital Allocator for Defiance Capital, Wangarian said on Alpha Homora’s token:
When properly designed, tokens serve to benefit both token holders and the underlying protocol. ALPHA has one of the most promising tokenomics I’ve seen to date. Incentives from all stakeholders are aligned with clear value accrual to the ALPHA token.
DeFi Pulse data indicates that the Alpha Homora protocol has $679 million in Total Value Locked (TVL) with an all-time high of $1.25 billion in this metric. On the last day, the protocol has lost 19.8% of its TVL, a downtrend that has been ongoing for the last 3 months.
