25.05.21

Purchasing at a discount: ALPHA - marginal farming

Purchasing at a discount: ALPHA - marginal farming

Alpha Finance Lab's primary product is the Alpha Homora protocol, a means of marginal profit farming. Leverages comprise funds investors allocate to the lending pool, and commission for their use depends on the amount of available money in the pool: the less money, the higher the margin price.

Bringing together the functions of crediting and marginal farming noticeably simplifies workflow on the platform (everything is under one roof) and enables an increase in “utilization rates”. These rates are maintained between 70-90% in Alpha Homora’s lending pools, whereas in those of Aave and Compound they may not necessarily exceed 10%. Thanks to Alpha Homora, ETN holders are now able to use their capital far more efficiently and enjoy higher profitability.

Leverage works the way it normally does: as prices move in the desired direction, investors reap short-term profits. If the delta between price and deposit turns negative, liquidation occurs and the remaining funds (minus the liquidation fee) are returned to the farmer.

Stakers not only receive part of the protocol’s commissions, but also access to more advantageous work conditions, e.g. increased leverage.

Quotes are moving toward support levels (2): $0,65-0,76. While the price remains above $0,50, we remain bullish. Our short-term target is around the $1,2 level. Our long-term target is $4,6-6,0.

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