ALPHA is a utility token issued by the platform with the same name to support its ecosystem. It is used to protect the protocol and to support the Alpha products with staking and liquidity. It also serves as a governance token.
The company behind the facility is Alpha Finance Lab, established in 2020. It was created to conduct research and introduce innovations in the sphere of decentralized finances. One of the goals of the decentralized platform is to create the token swaps with a high degree of privacy. The members of the ecosystem can lend assets with fixed interest rates.
The mission of Alpha Finance Lab is the innovation work in the DeFi space with the help of Alpha product. The token holders are offered to decide on the main protocol parameters for all Alpha products and the issues of their interoperability. Thus, the native token of the Alpha platform becomes the primary tool for alignment of incentives for the developers and supporters of the community.
In September 2020, the company launched its testnet via Binance Chain. Being a decentralized finance platform, it creates an ecosystem with the products interacting with each other. It helps customers to increase revenue and provide access to the version of Alpha that was well optimized for the use on different blockchains, for instance, on Binance Smart Chain or Ethereum.
Alpha Lending protocol requires a liquidity mining program that rewards users with ALPHA tokens for cryptocurrency assets that are deposited and borrowed by them. The governance of Alpha Finance Lab is implemented via DAO (decentralized autonomous organization) enabling token holders to decide upon the details of the products developed on the Alpha platform. They can, for instance, vote to determine the characteristics of the products or specify the interoperability details.
At the time of writing, 4 leveraged pools are offered on Alpha Homora v2 including Curve’s pool for farming CRV, the SushiSwap pool ETH/SUSHI for farming SUSHI, Uniswap’s pool offering leverage on ETH, and Balancer’s PERP/USDC pool enabling token farming. All pools also offer leverage.
If the platform offered simple token swapping in the beginning, its offer expanded to more sophisticated offerings such as derivatives. At the time of writing, Alpha Finance Lab represents the collection of DeFi products that were financed by the Spartan Group, DeFiance Capital, and MultiCoin Capital, and other investment companies that focus on hi-tech blockchain products.
The goal of Alpha Finance Lab is to create DeFi products meeting the growing requirements of the rapidly growing industry. The products should be simultaneously simple and easy to access. Alpha Lending is one of the products launched by Alpha Finance Lab, which is a decentralized lending protocol with the interest rates adjusted algorithmically.
The team also developed a platform with a leveraged yield-farming that was named Alpha Homora and a perpetual swap product AlphaX that doesn’t use an orderbook. It was developed for novices as it removed the manual futures funding rates including them into the price. AlphaX gives the opportunity to liquidity providers and yield farmers to hedge the leveraged positions and neutralized market positions thus reducing the downside risks. The Alpha platform stands apart from most other platforms as both products it developed are aimed at casual users in the decentralized finance sphere.
The release of Homora V2 was considerably enhanced after it started supporting more pools. In addition to initially supported Uniswap, the upgrade covered Balancer, SushiSwap, and Curve. This allows customers to select from a bigger range of pools for yielding. Also, a new release enabled 9x leverage and the capability to borrow diverse assets, not only Ether. The platform was developed to cater to the needs of common users with a limited budget to be able to derive a larger profit thanks to Band Protocol that is used for its work.
According to the data of DeFi Pulse, the total value of Alpha Homora locked has exceeded 1 billion USD by February 2020. This is the fastest-growing DeFi protocol in history that reached 600 million USD. It took only three months for the platform to outpace the biggest DeFi projects. It’s worth mentioning that even such leading platforms as Curve and Aave could achieve such results in 6 months.
As has been mentioned above, the ALPHA token is used to attract liquidity and participants in blockchain governance. The governance of the project is fulfilled on two levels through DAO such as Alpha Finance-level governance and product-level governance allowing users to vote on different subjects. In the first case, the issues refer to the way Alpha products interoperate, while voting on the product level decides on characteristics of the products.
The DeFi token has become very popular after the support of the asset by Andre Cronier, a famous developer and the issuer of the YFI token, the price of which has increased by 130,000% within 6 weeks after its release. In his tweet, Cronier informed about the joint work with Alpha Finance Lab on the AlphaHomoraV2 project. The cooperation can help users to earn on expansion and scaling digital assets after the integration of such systems as Alpha, Sushi, and Cream.
Alpha Finance was developed by a qualified team that includes highly experienced members. With its unique approach, it brought a new revolution to the sphere of decentralized finances. The protocol employed by Alpha Finance provided leveraging to Binance Smart Chain and enabled wrapping ERC-1155 tokens.
Tascha Punyaneramitdee is a co-founder and CEO at Alpha Finance Lab. Previously, she was the Head of Strategy for Band Protocol. Also, he worked as a Product Manager at Tencent, a fintech company, and Investment Banking Analyst at Jefferies, the global investment banking firm in UK and USA. Tasha was also actively involved in the volunteer experience. For instance, she is a Vice President at Thai AGA, an organization that raises awareness for animal welfare issues and a founder of the Farmers Project aimed to help farmers in Thailand.
In December 2020, Alpha Finance Lab started the partnership with Aave. The platform added the feature “Earn on Aave + ETH”.