Alpha Homora is a DeFi protocol for leveraging your position in yield farming pools. Users can participate in Alpha Homora protocol as yield farmers, ETH lenders, liquidators, or bounty hunters.
Alpha Homora has shown an amazing on-chain performance since it launched. The 7d users increased by 27.72%; 7d transactions increased by 32.96%; 7d volume exceeded $1.21B with a 56.51% increase.
(The black dot curve represents the token price.)
The ALPHA token price has a high correlation with Alpha Homora’s on-chain data, which increased by 34.7% in the past 7 days.
How to use Alpha Homora as different types of users?
You can borrow ETH with up to 2.5x leverage to yield farm on supported Uniswap and SushiSwap pools.
The APY reward you can get contains 3 parts:
Yield farming in the liquidity pool
Trading fee rewards of the token pair
$ALPHA rewards specifically to Alpha Homora users
All the yield farmed tokens will be automatically converted to add onto users' positions every 24 hours. This makes sure all yields are reinvested to further maximize everyone's profit. Position stays solvent as long as the debt is worth less than killFactor (80% for Uniswap pools and 60% for IndexCoop pool) of the position value. You can at any time choose to adjust your positions by adding more ETH or taking some or all ETH out. Any action is acceptable as long as the result position has debt no more than 70% of position value.
The Alpha Homora V2 has launched on 1st Feb, with 4 leveraged pools available now: Curve’s 3pool (USDT, USDC, DAI), Balancer’s PERP/USDC (80/20), SushiSwap’s ETH/SUSHI (migrating from v1) and Uniswap’s ETH/UNI (migrating from v1). The highest APY is 362.11% for the Balancer pool.
Once you deposit your ETH, you will earn 2 things.
Earn interest paid by borrowers, depending on ETH utilization rate*.
Earn ALPHA from using Alpha Homora (see ALPHA Liquidity Mining section below)
*Note: 10% of the borrower’s interest is allocated for reserves.
Liquidators earn 5% of the position value for liquidating positions at risk.
Bounty hunters can call reinvest function to sell all yield farmed tokens in Alpha Homora portfolio for ETH, and reinvest into the yield farming pool, earning 3% of the total reward in the process.
ALPHA tokens are the core governance of Alpha Homora protocol. It mainly has 3 usages:
Utility token for all Alpha products. You can provide liquidity or stake to receive % protocol fees.
Main token to leverage Alpha products interoperability. You need to stake ALPHA in order to unlock interoperability features between Alpha Lending and Alpha Homora.
2-Level Governance: product-level and Alpha Finance-level. Product-level governance will allow ALPHA token holders to govern key metrics of specific Alpha products. Alpha Finance-level governance will be implemented in the second phase and will allow ALPHA token holders to govern how the portfolio of Alpha products interoperate.
Alpha Homora's smart contract has been reviewed by PeckShield. However, keep in mind that there are still risks using a DeFi protocol.
You may also like: