“It’s not about ideas. It’s about making ideas happen.”
When we first introduced Alpha Homora to the world, it defined what leverage yield farming is. Soon enough we launched Alpha Homora V2 with better technology and functionalities on Ethereum. With its technology, it offers users the most innovative yield farming process by today. And today, we are bringing this Alpha Homora V2, the original and ultimate leverage yield farming product, to the Avalanche community.
So for the Avalanche community who don’t know what Alpha Homora V2 is, let’s begin where it all started. Liquidity Providers.
A liquidity provider or some may know it as a market maker, is someone who provides their crypto assets to a DEX protocol to help create a decentralized form of trading. In return, these liquidity providers are given two things: The LP tokens that represent their liquidity provider’s share of the pool and a portion of the trading fees (according to the share of the pool you have) paid by those who trade against this liquidity pool. For instance, imagine providing USDT.e and AVAX to the USDT.e/AVAX liquidity pool on Trader Joe. Today, users can earn up to 20.7% APR from the fees generated by trade and LP tokens representing their share of the pool.
To incentivize users to provide liquidity, DEX protocols give additional incentives called yield farming rewards for users to provide liquidity. So, liquidity providers can become yield farmers to earn more rewards by staking their LP tokens to earn yield farming rewards, hence it is called yield farming with LP tokens. On Trader Joe, users can earn up to 65.5% APR from providing liquidity to USDT.e/AVAX and staking the LP token of this USDT.e/AVAX pool today. As a result, yield farmers get 86.2% APR (20.7% trading fees + 65.5% yield farming rewards which come in JOE tokens).
Leverage Yield Farmer
This scheme of earning passive income on DEX protocols is a well-known and widely used method among crypto farmers. But what is still lacking in the current landscape is the ability to exceed the cap of APR/APY set by DEX protocols.
We know this limitation and hence tackle it down for our users. Alpha Homora V2, gives crypto farmers the ability to exceed the max APR/APY through leveraging.
Alpha Homora V2
Leverage Yield Farmers
The innovative side of leverage yield farming on Alpha Homora V2 allows crypto farmers to combine their yield farming tokens with borrowed tokens as collateral. So users can earn even higher APR/APY exceeding the limit set by DEX protocols.
For instance, on Alpha Homora V2, you can supply $100 of USDT.e and borrow $200 of AVAX. Therefore, by combining both assets, you will have a total of $300 of collateral assets. This is then used to leverage yield farm, in which the reward is the return on $300, translating into 3X of the original APR/APY.
Trader Joe offers yield farmers 86.2% APR on USDT.e/AVAX pool, by leverage yield farming this pool through Alpha Homora V2, you can earn more, such that 3X on 258.6% APR (86.2 x 3) is possible.
For those who prefer to lend their assets out and bear limited risks compared to leverage yield farmers, lending is easy and more beneficial on Alpha Homora V2 than other lending protocols. This is because there is a high demand to borrow these assets on Alpha Homora V2 driven from leverage yield farmers, leading to a significantly high lending interest rate for lenders.
Alpha Homora V2 on Avalanche
With a powerful leveraging yield farming mechanism, Alpha Homora V2 not only redefines what yield farming can be but how it can become.
With this launch on Avalanche, Alpha Homora V2 will break the gas fee obstacles for many users that can be 10x~100x cheaper than on the Ethereum network. So please fasten your seatbelts as we are launching to Avalanche on October 21, 14:00 UTC. See you soon!
Click here to watch: Introducing Alpha Homora V2 on Avalanche
About Alpha Finance Lab
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