- A to B
- C to I
- Cardano (ADA)
- Chainlink (LINK)
- Chiliz (CHZ)
- Cosmos (ATOM)
- Compound (COMP)
- Conflux Network (CFX)
- Coti (COTI)
- Curve (CRV)
- Dash (DASH)
- Decentraland (MANA)
- Decred (DCR)
- Dent (DENT)
- Dogecoin (DOGE)
- Elrond (EGLD)
- Enjin (ENJ)
- Ethereum (ETH)
- EOS (EOS)
- Fetch.ai (FET)
- Filecoin (FIL)
- Hedera Hashgraph (HBAR)
- Internet Computer (ICP)
- IOTA (MIOTA)
- K to R
- S to T
- U to Z
Securities.io is committed to rigorous editorial standards. We may receive compensation when you click on links to products we review. Please view our affiliate disclosure. Trading involves risk which may result in the loss of capital.
Table Of Contents
What is Alpha Finance Lab?
Alpha Finance Lab (ALPHA) is a network of interoperable Defi products and solutions. They focus exclusively on DeFi space and aim to provide maximum returns to DeFi users at minimal risk. To offer maximum returns, Alpha Finance Lab conducts market research to explore unmet market demand. Subsequently, they launch products to capture the market demand. They have raised funding from some of the most reputed names in the crypto industry, like Defiance Capital, MultiCoin Capital, and The Spartan Group.
The Binance Smart Chain-based Alpha Lending was the first product from Alpha Finance Lab. It is a decentralized lending protocol where the interest rate adjustment happens algorithmically. The native token of Alpha Finance Lab is known as Alpha, and over 20% of its circulating supply is staked, whose current value stands at $52.3 million.
What Problem Does Alpha Finance Lab Solve?
There are two specific problems that Alpha Finance Lab wants to fix, and these are:
- Most of the DeFi products are built on Ethereum, which restricts the growth of DeFi protocols due to Ethereum’s widely-known scalability issues. It also prevents DeFi users from accessing the benefits of other prevalent blockchain networks with low fees.
- Another issue plaguing the DeFi space is the low liquidity on decentralized exchanges, which results in higher price volatility on DEXes. It prevents many new users from opting for decentralized exchanges over centralized ones.
Alpha Finance aims to solve these issues by bridging the gap between the products and solutions that the DeFi users want and what is available in the market. Essentially, they are building an ecosystem of DeFi products that will work in synergy to offer maximum returns to their users while minimizing the downside exposure. Their DeFi products will also attract new users by eliminating the prevalent problems in DeFi, which will improve the DeFi adoption rates.
The Product Development Process at Alpha Finance Lab
To build unique and innovative DeFi products, Alpha Finance Lab leverages a two-step process. First, they conduct in-depth research to find the most pressing problems in DeFi. In the second step, they evaluate the market demand for a solution to the problem they came across in their initial research.
After evaluating the market demand, they continue to brainstorm to find a product or solution for the problem to capture the market demand. Then, the Alpha Finance Lab team runs simulations for idea validation, which also helps them launch user-friendly and innovative DeFi products.
Alpha Finance Lab Products
Launched in September 2020, Alpha Lending is a pool-based decentralized lending protocol. With Alpha Lending, you can become a lender and also borrow from its pooled fund.
To become a lender on Alpha Lending, you have to deposit supported assets on the protocol, which in turn is deposited into a smart contract that shows the aggregated amount of liquidity available for assets in the pooled fund. After depositing supported assets, you will receive interest-bearing altokens in an amount equal to the supported cryptocurrency you deposited to the Alpha Lending protocol.
If you want to borrow from the liquidity pool, you will have to deposit collateral assets like BNB and other supported assets. The amount that you can borrow from the protocol depends on the Loan-to-Value (LTV) ratio of the collateral asset. The LTV ratio varies by the type of collateral you choose. BNB has an LTV ratio of 75%, for instance. It means that if you deposit BNB as collateral, you will receive 75% of the current value of the BNB funds you deposited as a loan.
There are two versions of Alpha Homora known as Alpha Homora V1 and Alpha Homora V2. Alpha Homora V1 is available both on the Ethereum blockchain and Binance Smart Chain. Alpha Homora is the first Ethereum-based product that offered DeFi users to take leverage positions on yield farming.
Alpha Homora is an innovative product from Alpha Finance Lab. It offers an opportunity to both Ethereum and BNB lenders to earn higher interest. It also enables yield farmers to receive better yield farming rewards by taking leveraged positions on yield farming.
Expanding the utility of Alpha Homora V1, the V2 version was launched on 1st February 2021. With Alpha Homora V2, users can take leveraged positions on yield farming on Uniswap, Balancer, Curve, and SushiSwap. It offers leverage up to 9X on a variety of assets, including ETH and stablecoins.
At the time of writing, the total value locked in Alpha Homora is over $1.139 billion, with Ethereum-based Alpha Homora V1 accounting for over $683 million worth of locked-in funds and BSC-based Alpha Homora accounts for over $153 million worth of locked-in funds. Alpha Homora V2, on the other hand, holds locked-in funds worth over $302 million.
AlphaX will launch in 2021. It will enable users to hedge their yield farming positions. AlphaX is inspired by Uniswap and makes it easy for DeFi users to interact with perpetual through its friendly user interface. The DeFi users can take both long and short positions using AlphaX.
It is a non-custodial platform, and thus, the users do not have to go through a KYC process to start using AlphaX. The concept of perpetual trades is a bit complicated for novice traders, a large user category of users that Alpha Finance Lab aims to target via AlphaX.
To simplify perpetual swaps, AlphaX combines both funding rates and prices. This way, users don’t have to remember the rates. The rates are automatically adjusted by factoring in the prices of the underlying asset. Thus, both the short and long traders do not have to fund their positions continuously.
The combination of AlphaX and Alpha Homora is the perfect example of synergy between the DeFi products from Alpha Finance Lab. With Alpha Homora, you can maximize your returns. Whereas with AlphaX, you can minimize the risks.
The native token of Alpha Finance Lab is known as ALPHA, and its maximum supply is 1,000,000,000. The current circulating supply of ALPHA stands at 250,153,035.
It has three use cases. The first use case is in the governance of Alpha Finance labs, as every token holder will have a number of votes corresponding to the number of ALPHA tokens they own. They can exercise their votes on crucial aspects related to the products of Alpha Finance Lab.
The second use case is a utility token. It will enable token holders to receive staking rewards by staking or earn a share of network fees by providing liquidity. With ALPHA tokens, users can also unlock additional functionalities on products from Alpha Finance Lab, and this is its third use case.
How to Buy Alpha Finance Lab (ALPHA)
Binance – Best for Australia, Canada, Singapore, UK, and most of the world. USA residents are prohibited from buying ALPHA. Use Discount Code: EE59L0QP for 10% cashback off all trading fees.
Gate.io – This is the best option for USA residents.
How to Store Alpha Finance Lab (ALPHA)
If you seek to make a major investment in ALPHA or if you are planning on HODLing this crypto for long periods of time, a hardware wallet is the best option. Hardware wallets keep your crypto stored offline in “cold storage.” This strategy makes it impossible for online threats to access your holdings. The Ledger Nano S or the more advanced Ledger Nano X both support Alpha Finance Lab (ALPHA).
Alpha Finance Lab – High Growth Potential
DeFi is the fastest-growing segment in the crypto world. But issues prevalent in the DeFi space are acting as shackles and preventing it from realizing its true potential. That’s where a project like Alpha Finance Lab makes a difference. The unique and innovative products from Alpha Finance Lab will help attract new users into the fold of DeFi applications. Thus, it’s a given that with the growing market of DeFi products, Alpha Finance Lab will gain even more prominence in the DeFi space.
Gaurav started trading cryptocurrencies in 2017 and has fallen in love with the crypto space ever since. His interest in everything crypto turned him into a writer specializing in cryptocurrencies and blockchain. Soon he found himself working with crypto companies and media outlets. He is also a big-time Batman fan.
You may like
Investing in Chiliz (CHZ) – Everything you Need to Know
Investing in Elrond (EGLD) – Everything you Need to Know
Investing In Curve DAO (CRV) – Everything You Need to Know
Investing in Near Protocol (NEAR) – Everything You Need to Know
Investing in Algorand (ALGO) – Everything You Need to Know
Investing in the Mirror Protocol (MIR) – Everything You Need to Know