Alpha Finance is a project that aims to build out an ecosystem of cross-chain DeFi products that are interoperable to bring increased “alpha” returns for its users. The company behind the project, Alpha Finance Labs, was launched in September 2020 by Tascha Punyaneramitdee.
Their first product called Alpha Homora was launched on October 5th. This protocol allows users to leverage their yield farming positions by a factor of up to 2.5X. It is like margin trading for Liquidity Farming as it allows farmers to borrow ETH to liquidity farm with a higher portfolio value. They will pay the interest from borrowing the ETH to other depositors on the protocol.
The protocol allows yield farmers to borrow ETH with up to 2.5x leverage when farming on supported Uniswap pools. The tokens that they earn from farming are then automatically reinvested back to compound the profits.
Additionally, Alpha Homora also allows users to deposit ETH into the Alpha bank and receive ibETH - an interest-bearing asset which is paid for by liquidity farmers that borrow ETH for leverage.
Alpha Finance Labs launched its token $ALPHA through an Initial Exchange Offering (IEO) on the Binance Launchpad during October 2020. The IEO saw 100 million ALPHA being sold at $0.02 which raised $2 million. The token allows for governance at the product level. It will also eventually be used as a utility token on the Alpha ecosystem.
The smart contracts for the protocol have been reviewed and audited by Peckshield which brings a level of confidence when depositing funds into the protocol.
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