Alpha Finance Lab: What Is It?

ALPHA Finance Lab is a decentralized platform that supports multiple blockchains and works on building an ecosystem of products that are interoperable and can be transferred to users on any blockchain. This project is built on Ethererum and Binance Smart Chain (BSC).

The native utility token of the platform is ALPHA. The holders of ALPHA tokens can earn a portion of the network fee by staking them. Another use of ALPHA is liquidity miner and governance vote.

Overview

The Alpha Finance platform was built by Alpha Finance Labs and provides DeFi products funded by industry gurus The Spartan Group, MultiCoin Capital, and DeFiance Capital. Each of these companies is a leading crypto-based investment firm.

By way of explanation, The Spartan Group, through its Spartan Capital subsidiary, focuses on “unique investment opportunities in the emerging crypto asset class.” However, it is not blindly following this strategy. Instead, it ensures high-end returns on a risk-adjusted basis through in-depth analysis.

As Alpha Finance Lab’s project lead and blockchain engineer, Tascha Punyaneramitdee and Nipun Pitimanaaree lead the project. Their backgrounds are rich in experience and education. Punyaneramitdee graduated from the University of California, Berkeley in Economics and has worked as an investment banker. She led the Band Protocol strategy department in the cryptocurrency and DeFi world, where she managed the network’s adoption.

Pitimanaaree, however, holds a Master of Science Degree in Electrical Engineering and Computer Science from MIT. In his previous work, he developed sophisticated stock market prediction algorithms. To power automated arbitrage trading in cryptocurrency, Pitimanaaree has curated an algorithm to power his algorithm. He had previously worked for OZT Robotics as the company’s chief researcher.

 Products offered by Alpha Finance Lab

Lending at Alpha 

Alpha Lending is a decentralized pool-based lending protocol due to being launched in September 2020. The Alpha Lending platform enables you to become a lender as well as borrow money from its pooled fund.   

Alpha Homora

The Alpha Homora V1 and the Alpha Homora V2 are two versions of the Alpha Homora. Both the Ethereum blockchain and the Binance Smart Chain are compliant with Alpha Homora V1. DeFi users can now take advantage of leverage positions on yield farming with Alpha Homora, the first Ethereum-based product.

Alpha Finance Lab provides Alpha Homora, a new product. BNB and Ethereum lenders both have a chance to earn higher interest. Additionally, taking leveraged positions on yield farming allows farmers to obtain better yield farming rewards. 

Alpha Homora V2 was released on 1st February 2021 and expanded the functionality of Alpha Homora V1. You can leverage yield farming on the Uniswap, Balancer, Curve, and SushiSwap markets with Alpha Homora V2. With it, you can get leverage up to 9X with ETH and stablecoins.

AlphaX

The first AlphaX launched this year 2021. You can hedge such a position by using it. AlphaX draws inspiration from Uniswap and provides easy interaction between DeFi and perpetual users. With AlphaX, DeFi users can take long and short positions at the same time. 

AlphaX has no custody and does not require users to undergo KYC before using it. Alpha Finance Lab aims to reach novice traders via AlphaX, a large user category that perpetual trades may be confusing for. 

Alpha Tokens: Their Uses

There are three distinct ways to use the ALPHA token.

• Alpha Finance and its products are the most prominent uses of the token as a token for governance. Each Beta product has governance capabilities unlocked by the token at the product level.
• ALPHA, on the other hand, is a utility token. Staking rewards are earned by holding liquidity or providing liquidity on the network.
• Additionally, it allows users interacting with Alpha Finance products to unlock more functionalities with a work token.

What is Alpha Finance Lab’s purpose?

Alpha Finance Lab aims to fix two specific issues:

1. Because of Ethereum’s widely-known scalability issues, most of the DeFi products rely on Ethereum, which inhibits DeFi protocol development. Users of DeFi cannot also take advantage of the low fees of other prevalent blockchain networks.
2. In addition to low liquidity, one issue plaguing the DEX space is price volatility due to the lack of liquidity on these exchanges. Decentralized exchanges are not as attractive to new users as centralized ones.

 By plugging the gap between what DeFi users want and what’s available on the market, Alpha Finance hopes to solve these issues. DeFi is creating an ecosystem of products that will work together in synergy to maximize profits while minimizing risks to users. By eliminating the prevalent issues in DeFi, their products will also attract new users, improving the adoption rate of DeFi.