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What is the origin of Alpha Finance Lab, which launched Binance New Coin Mining｜Project Introduction

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Spartan Group, Multicoin Capital and DeFiance Capital are its strategic investors.

Alpha Finance Lab (Alpha) is a project focused on building cross-chain DeFi ecosystem products that will capture unresolved needs in DeFi in an innovative and user-friendly way.

Currently, there are two problems in the DeFi market:

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1. The demand and usage of DeFi are limited

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Current demand for DeFi is limited by Ethereum scalability issues. Specifically, as the number of decentralized applications (dApps) on Ethereum increases and the number of users increases, so does the gas fee and transaction processing time on Ethereum. Once the use and demand of DeFi on Ethereum grows to a certain level, the high gas fee and slow transaction processing time of Ethereum will bring obvious obstacles to users and weaken the enthusiasm of participants.

The composability of Ethereum has spawned a variety of DeFi products, including lending, derivatives, synthetic assets, etc. Although these DeFi products can interoperate within the Ethereum ecosystem, the unresolved DeFi demand on other blockchain platforms such as Polkadot, Cosmos, Binance Smart Chain, etc. is still growing rapidly.

2. The supply of DeFi is limited

Because most assets are concentrated on centralized trading platforms, the supply of DeFi assets is also limited. Although since August 27, 2020, DEX trading volume has soared due to Sushiswap boosting Uniswap’s liquidity.

Original image source: The Block

If you look at the current asset supply of DeFi, whether it is a lending agreement or an automatic market making (AMM) DEX, there are some problems, such as impermanent losses. This also hinders users from putting funds into current DeFi products.

The existence of Alpha Finance Lab will explain the release of restricted demand and supply in DeFi.

Product

Alpha currently A total of two products "Alpha Lending" and "Alpha Homora" were launched.

Alpha Lending

Alpha Lending is the first product launched by Alpha. It is built on the Binance Smart Chain (BSC) and will provide a variety of financial components for the next generation of cross-chain DeFi Products lay the groundwork.

The Alpha team believes that cross-chain DeFi and liquidity are the key to unlocking the upper limit of demand and supply, which will push DeFi into the next stage an innovative stage.

The reason for choosing Binance Smart Chain is that BSC is faster and cheaper than Ethereum, and it also supports smart contracts Programmability (compatible with EVM), can support ERC-20 tokens to leverage the developer mindset and user base of large DeFi developers in existing DeFi products.

The main function of Alpha Lending is to provide perpetual loans. After users deposit their assets into the system as collateral, they can Get borrowed and get liquidity. Asset utilization (the value of the total amount of collateral being lent out) will determine the interest rate for borrowers and lenders. Since the utilization rate reflects the borrowing demand for assets, the higher the utilization rate, the higher the corresponding borrowing cost, which means the higher the loan interest rate.

Alpha Homora

Alpha Homora is the second product launched by Alpha. Through the Alpha Homora protocol, users can use leverage when participating in liquidity mining.

There are 4 roles in the Alpha Homora ecosystem, namely miners, ETH lenders, liquidators and bounty hunters, Among them, miners can obtain a position that is 3 times the size of the initial investment portfolio for liquidity mining, ETH lenders can earn income by lending ETH, liquidators can earn 5% liquidation bonus through risk liquidation, and bounty hunters can Earn 3% by reinvesting in the Alpha Homora portfolio.

Token ALPHA

Token name: Alpha Finance Lab (ALPHA)

Amount of tokens: 1 billion

Initial token circulation: 174,136,442

The ALPHA token is the native utility token within the platform. Current and planned use cases for the token include liquidity mining, governance voting, and token staking. Users can mortgage the token to obtain platform turnover, and the mortgaged ALPHA token will be used to pay contract bad debts. ALPHA tokens can also be used for liquidity mining rewards and governance voting.

Alpha Finance Lab will make governance decisions in the form of distributed autonomous organizations in the product and financial layers of its platform . Product layer governance allows token holders to vote on product parameters, while financial layer governance allows token holders to vote on how a series of products within the project will interoperate.

10% of ALPHA is used for Binance Launchpad sales, the unit price is 0.02 USD; 13.33% is used for private sale, the unit price is 0.0125 USD; 36.67% for ecology; 15% for team and advisors; 20% for liquidity mining; and the remaining 5% for Binance Launchpool.

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Team information

The project leader of Alpha Finance Lab is Tascha Punyaneramitdee, former strategy director of Band Protocol, and investment bank analyst at Jefferies.

Principal Engineer and Blockchain Researcher Nipun Pitimanaaree is the former Chief Research Officer of OZT Robotics.

Developer Thara Malaimarn is a blockchain developer for Band Protocol and Loom Network.

Software Engineer Pitchanai Thitipakorn is a former GIS software engineer.

On October 7, 2020, Spartan Group, Multicoin Capital and DeFiance Capital became strategic investors of Alpha Finance Lab.

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