HashKey Digest

2 June 2021

Alpha Finance

Messari gives an update on the progress of Alpha Finance here

Alpha Homora is currently available in three versions:

  • V1 – Leveraged liquidity mining protocol on Ethereum (ETH can be borrowed)
  • The extension of V2-V1 that adds a stablecoin lending market
  • vBSC – Leveraged liquidity mining built on BNB lending in BSC

Alpha has satisfied two main markets: First is the lack of an effective revenue stream for ETH holders at AMM; second is the declining yields since the summer of 2020. ETH holders receive high returns on their loans and borrowers receive leveraged mining returns. This allows the lending pool to achieve a 70-90% utilisation rate of funds, compared to the mere 10% for Aave and Compound.

 

 

Alpha’s daily new loans even once exceeded those of Aave and Compound

 

Alpha grew quickly, but on 13 February, two weeks after V2 went live, Alpha came under attack with a series of complex synthetic transactions and a lightning loan on Aave. Although no user assets were lost, an emergency fix was made and an audit of V2’s smart contracts started. The impact on Alpha is greater this time.

Alpha X is a non-order book perpetual contract for Alpha, which appears as a standalone product but will be incorporated to Alpha. Alpha X will be live on Ethereum and BSC.

Alpha is ready to proceed with Alpha Homora v2 after the completion of the re-audit. With the addition of LP token pledge, oracle machines and other setups, Alpha is relatively new and innovative and is the first Phidias lending partnership agreement with Cream’s Iron Bank. The attack has held back certain of the momentum of Alpha. With the return of V2 and Alpha X, it should regain lost ground.

This article details the rapid rise of an innovative protocol and the obstacles to its development, which will not be uncommon for DeFi.

Source: https://messari.io/article/alpha-finance-lab?utm_source=newsletter&utm_medium=top&utm_campaign=alpha-finance-lab

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