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Alpha Homora: Provide leveraged liquidity mining for 32 trading pairs｜Project Introduction

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Provide leveraged liquidity for the ETH/PICKLE trading pair on Pickle with a maximum annualized rate of return of 111.53%.

Recently, hot topics in the encryption circle revolve around the record high price of Bitcoin, Andre Cronje's merger of multiple DeFi projects, and receiving various airdrops. On November 21, Andre Cronje launched a proposal to transfer the KP3R-ETH pool to Alpha Homora. Alpha Homora is the second product launched by Alpha Finance Lab. Alpha Finance Lab's token ALPHA has attracted a lot of attention with a monthly increase of 886.1%.

Just like Rhythm BlockBeats in the last article"What is the origin of the Alpha Finance Lab that launched Binance New Coin Mining｜Project Introduction", Alpha is mainly to solve two problems in the DeFi market:

1. The demand and usage of DeFi are restricted;

2. The supply of DeFi is restricted.

The rhythm of this article will no longer repeat and introduce Alpha, but focus on Alpha Homora.

Four roles, three business segments

In Alpha Homora, there are four roles: mining farmer, ETH lender, liquidator, and bounty hunter, and three major business segments: ALPHA, Farm, and Earn.

- Mining Farmers: Up to 2.5 times the position of their initial liquid assets.

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1. One token can be used to provide liquidity;

2. Up to 2.5 times leverage;

3. High debt liquidation: When the debt value is higher than the position value, it will lead to liquidation;

4. The position can be adjusted.

-ETH Lender: Earn interest on your ETH holdings.

1. Profitable ETH (ibETH): When users deposit ETH, they will get a certain percentage of ibETH tokens , but a tradable interest-bearing asset, similar to cToken;

2. Earn interest.

-Liquidator: Get 5% liquidation reward by performing risk liquidation.

Example: A borrows 150 ETH with the initial 100 ETH, mines UNI on the ETH-USDT Uniswap pool, leverage 2.5 times. Currently A's total position value is 250ETH. Subsequently, the value of ETH dropped. The total position value of A has dropped from 250 ETH to ️175 ETH, and the debt ratio is 85% (150ETH/175ETH), which is higher than the warning line (80%) of the ETH-USDT pool. In this case, a liquidator can come in to liquidate. At liquidation, the position value is first used to pay off the debt (150 ETH in this example). 5% of the position value of 175 ETH is then paid to the liquidator. So, in this case, the liquidator would get 8.75 ETH. The remaining 16.25 ETH (175 ETH - 150 ETH - 8.75 ETH) will be returned to mining farmers.

- Bounty Hunter: Receive 3% bonus of total rewards by reinvesting in Alpha Homora portfolio.

Bounty hunters can call the "reinvest" function to reinvest all tokens mined from the Alpha Homora portfolio Sell it into ETH, reinvest it into the income pool, and get 3% of the total reward in the process.

Currently, Alpha Homora supports ETH/WBTC, ETH/USDC, ETH/USDT, ETH/DAI, ETH/YFI, ETH/KP3R, ETH/UNI, ETH/LINK, ETH/AAVE, ETH/MKR, ETH/renBTC, ETH/REN, ETH/SNX trading pairs provide leveraged liquidity; support for ETH/SUSHI, ETH/USDT, ETH/USDC, ETH on SushiSwap /DAI, ETH/WBTC, ETH/BAND, ETH/LINK, ETH/AAVE, ETH/COMP, ETH/SNX, ETH/SUSD, ETH/UMA, ETH/REN, ETH/YAM, ETH/CRV, ETH/YFI Trading pairs provide leveraged liquidity; support leveraged liquidity for ETH/MTA trading pairs in mStable; support leveraged liquidity for ETH/DPI trading pairs in IndexCoop; support ETH/PICKLE trading pairs in Pickle Provide leveraged liquidity.

Currently, Pickle provides leveraged liquidity for the ETH/PICKLE trading pair with an annualized rate of return of up to 111.53%.

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In the Earn section, there is an item called "Earn on Aave + ETH", which is a new function after Alpha Homora reached a cooperation with Aave in early December.

Because Alpha Homora’s ETH deposit annualized rate of return is higher than Aave’s ETH loan annualized rate of return, so you In addition to the deposit yield of other assets lent on Aave, you can also earn income from this difference. Users can lend assets on Aave, use these assets as collateral, borrow ETH from Aave, and lend the borrowed ETH to Alpha Homora (Detailed operation reference).

Innovation of Alpha Homora: Volume Mining

Alpha Homora's transaction volume mining is a new method, and rewards will be distributed in the form of transaction fee APY.

In order to earn ALPHA in transaction volume mining, users need to hold ALPHA, ETH, ibETH, and pass Alpha Homora may directly provide liquidity for the ibETH/ALPHA pool on Uniswap to earn high transaction fee APY.

So, where does the high transaction fee APY come from ?

Alpha Homora will provide liquidity to the ibETH/ALPHA pool in the form of transaction fee APY every day Users distribute 150,000 ALPHA for 30 days (November 16-December 16).

As the second product of Alpha Finance Lab, Alpha Homora has undoubtedly attracted great attention from the community. At the same time, Alpha Finance Lab’s third product, AlphaX, has also started internal testing. This is a completely different product from Alpha Homora, mainly for users who conduct perpetual transactions, and the official version will be launched after the test is completed.

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