It has been a challenging condition to find Defi products outside the Ethereum blockchain. This is because almost all decentralized applications are built inside this blockchain, thereby saturating it terribly.
This traffic of Dapps in the blockchain increases the gas fees and makes users seek alternatives like Binance Smart Chain. The Alpha Finance Lab has addressed this and other problems facing the decentralized exchanges, like lack of liquidity.
The Alpha Finance Lab is a ‘cross chain’ Defi product that aims to address the unresolved challenges of the industry. The Lab has two products, the Alpha Lending and the Alpha Homora, a leveraged yield-farming platform. The former is a ‘decentralized lending’ platform with the interest rates adjusted algorithmically.
The Finance Lab intends to launch its third product, the AlphaX, soon. It is a non-order book product for perpetual swapping.
This Alpha Finance Lab review will provide you with all the relevant detail of the protocol. In addition, it will guide beginners and investors on the mechanisms and how to use the Alpha Finance Lab platform, among others. Read on!
What is Alpha Finance Lab?
The Alpha Finance Lab (ALPHA) is a cross-chain of Defi products that are interoperable. Their main focus is to enable Defi users to earn maximum returns with reduced risk.
The protocol carries out market research that will address the unmet market demands. In addition, it aims at bringing alpha to members across varieties of blockchains like Binance Smart Chain and Polkadot.
The finance lab launched some products that will help them to accommodate the demand in the market. They raised funds from some renowned bodies like the Spartan Group, MultiCoin Capital, and Defiance Capital. The Alpha Finance Lab (ALPHA) has its prod Alpha Finance Lab (ALPHA) products built on the Binance Smart Chain. They include;
Alpha Lending: It is the initial product from the Alpha Finance Lab. As the name implies, Alpha Lending is a decentralized lending platform where the adj Alpha Lending statement of interest rates is algorithmic.
The Alpha Homora: This is another product of the Alpha lab. It is a platform for Leveraged yield-farming.
There are two major challenges in the Defi market that the Alpha Finance Lab seeks to address, namely;
- limited availability of digital products outside the ‘Ethereum blockchain’ making users seek alternative blockchains like the BSC
- Lack of liquidity on decentralized exchanges leads to challenges like volatility in crypto prices.
The Alpha protocol has a native token referred to as the ‘ALPHA..’ The holders of this token can receive a share of the protocol’s transaction fees as profit by staking their tokens.
More than 20% of this token’s circulating supply volume is staked, which amounts to USD52.3 million currently. Users of the ALPHA token can also use it as governance voting or liquidity mining in the platform.
However, The Finance Lab intends to launch its third product, the AlphaX, soon.
Founders of Alpha Finance Lab
Tascha Punyaneramitdee is the founder of the Alpha Finance Lab (ALPHA). The protocol was first launched in 2020 and had its token sale in public on the Binance Launchpad.
Punyaneramitdee is currently the protocol’s project lead and the head of the Band protocol’s head. She had several experiences while working with many financial firms globally before developing the Alpha Finance Lab.
Her last place of work was in a Bank at the Jefferies as an investment analyst from 2017 to 2018. The Alpha finance lab CEO also worked as a product manager at Tencent’s technology giant from 2018 to 2020. The protocol’s main team is like seven in number as contained in their official LinkedIn page.
Nipun Pitimanaaree is one of the core members of the Alpha Finance Labs. He is a Computer Science and Mathematics graduate from the Institute of Technology Massachusetts (MIT. Pitimanaaree is the lead engineer and blockchain researcher with a gold medal award at the International Mathematical Olympiad (IMO).
Alpha Finance Lab Products
In this section, we will discuss the various Alpha Finance Labs products as stated above in detail.
This is the first product of the protocol and is first launched in 2020 September.
The Alpha Lending consists of a pool of decentralized lending protocols where one can lend or borrow funds from. You need first to deposit any of the protocol’s supported assets to become a lender on this platform.
These assets are deposited into a ‘smart contract’ showing the aggregated liquidity amount available for the assets in the pool.
Afterward, you will get an equal amount of ‘interest-bearing’ tokens compared to the supported crypto you deposited. To borrow funds from the platform, you will need to deposit some supported assets like BNB as collateral.
The amount to borrow from this platform depends solely on the LTV (loan-to-value) ratio of the assets used as collateral. The loan-to-have ratio differs with the collateral type; the LTV ratio of BNB, for instance, is 75%. This implies that using BNB coin as collateral gives 75% of the value of whatever amount of BNB deposited as a loan.
This is the second Product of the Alpha Finance Lab, and it has dual versions ‘Alpha Homora V1 and V2’. They were both launched on February 1st, 2021. The Alpha Homora V1 can be found on both the Binance Smart Chain and the Ethereum blockchain. It is the number one Ethereum-based Defi product to allow users to take leverage on yield farming.
The Alpha Homora product is surely an innovative one from the Alpha Finance Lab. It allows both BNB and Ethereum lenders to earn a higher interest rate on their trades. It also allows the yield farmers to get better rewards for their yield farming by leverages them.
More so, you can take yield farming leverage positions with Alpha Homora V2 on Balancer, Curve, Uniswap, and SushiSwap. It has the capacity of offering 9times leverage various assets, including stable coins and ETH.
As of writing this review, Alpha Homora has a locked value totaling about USD1.139 billion. The ‘Ethereum-based’ Alpha Homora V1 locked-in funds are USD683 million, while that of the BSC-based is worth over USD 153 million. The Alpha Homora V2 holds locked-in funds that worth over USD302 million.
As stated in one of the sub-headings above, the Alpha finance lab will be launching this third product this year, 2021. AlphaX is powered by Uniswap, which makes users interact easily through its interface that is user-friendly. It enables users to leverage their position in yield farming, whether short or long positions.
AlphaX is a ‘non-custodial platform thus; users don’t need to go through the KYC process before signing in to AlphaX.
During swapping, AlphaX uses both prices and funding rates, making it easy for users as they don’t have to remember them anymore. These rates are adjusted automatically with the prices of all underlying assets factored in.
Hence, short and even long-term traders don’t need to fund their positions continuously. The combination of Alpha Homora and AlphaX is an ideal example of the synergy between the Alpha Finance Lab from Defi products. With the Alpha Homora, one can maximize income or returns. But with AlphaX, one can minimize the transaction risks.
How Does Alpha Finance Lab Work?
The Alpha Finance lab targets to create a cross-chain of products that will leverage the principles of traditional finance. It aims to achieve this by developing an array of Alpha products while operating in a decentralized form. The main purpose of the Alpha product remains to maximize earnings or profits and minimize risk or downside exposure.
Each of these products addresses the main issues of the Defi industry and offers synergy within the Alpha Finance Lab’s ecosystem. Using the Alpha Homora product, for instance, users can participate here as yield farmers, liquidators, or ETH lenders.
ETH lenders receive high profits for lending some of their ETH to liquidity providers or the yield farmers. They always pay a fee to the ibETH staking pool for borrowing the ETH token and earn ibETH as interest. The ibETH is a tradable digital asset that constantly represents the ETH share in the depositing pool.
The yield farmers can assume leveraged positions with the borrowed liquidity and receive higher trading fees and farming APY, respectively. This same ideology applies to the liquidity providers that can ‘leverage’ their positions and receive high trading fees APY.
This working mechanism is similar to that of other Alpha Finance Lab products since they have the same aim and target. You are free to go through their official web page for information.
The Alpha Token
The Alpha Finance Lab has a native token referred to as ALPHA. It has a maximum token supply of 1,000,000,000 (1 billion). The ALPHA token has a current circulating supply of 250,153,035 and can be used as;
- Governance token: It enables its holders to vote based on the volume of tokens they possess. They have the right to vote on important matters relating to the Alpha Finance Lab products.
- Utility token: Holders of ALPH tokens receive rewards for staking their tokens or sharing in the network fees as they provide liquidity.
- Access to other product functionalities: ALPHA token helps users to unlock other Alpha Finance Lab products functionalities.
How to Buy Alpha Finance Lab (ALPHA)
You can buy ALPHA from different exchanges like;
Binance – This is best for users residing in most of the world like the UK, Australia, and Canada, Singapore, excluding the residents of the USA.
The 10% Discount Code or cashback off all trading fees is EE59L0QP.
Gate.io – This exchange is the best option for the residents of the USA.
How to Store Alpha Finance Lab (ALPHA)
We recommend the hardware wallet for users who want to invest so much in ALPHA or hold the crypto for a long time. It stores the Crypto offline (cold storage), making it difficult for online threats to access the stored assets.
Other good wallets that support the Alpha Finance Lab (ALPHA) are the advanced Ledger Nano X and the Ledger Nano S.
How to obtain Alpha Finance (ALPHA) tokens?
You can get ALPHA tokens through these two methods.
- You can buy them from any ALPHA-supported exchange like Binance and Uniswap. You can go through the Alpha Finance Lab’s (ALPHA) markets to get the more different exchanges where ALPHA is traded.
- The second option is to stake assets on the protocol’s website and receive more ALPHA tokens in return. Users that provide Liquidity will get ALPHA tokens at varying rates based on the volume of liquidity they provide. And also on the kind of pool they participate in.
What Makes Alpha Finance Lab Unique?
The Alpha Finance Lab different itself from other DeFis by seeking, identifying, and attending to the unmet needs in the Defi space.
Unlike the other platforms, the protocol wants to ensure that it offers in-demand utility’ solutions. It also seeks to be user-friendly and help in making Defi easily accessible.
Each of the Alpha Finance Lab products also acts as a bolster for the entire Alpha network. They provide more utility for the holders of ALPHA tokens.
The first products of the Alpha Finance Lab’s claim to offer a new solution to the Defi market.
Alpha Homora is recorded as the first product to offer the concept of leveraged yield farming. And Alpha Homora V2 introduces the first ‘smart contract’ that can borrow from other smart contracts using the under-collateralized pattern. This process is known as Cream Finance.
However, AlphaX, once launched, will be the only Uniswap/Sushiswap-style decentralized exchange. It will offer continuous swapping without the need for order books. This enables more users to enjoy the benefits of the perpetual swap, like leverage trading, even when they don’t understand the working mechanism.
Members of the Alpha Finance Lab holding the ALPHA token are bound to benefit more as all Alpha products grow. These products include Alpha Homora (vBSC), Alpha Homora (vEthereum), Alpha Homora (v2), and AlphaX. As a result, these members will form an integral part of this growing Alpha ecosystem.
The ALPHA tokens that they staked are used as a backstop in the Alpha ecosystem to secure it.
How Is ALPHA Tokenomics Unique?
1) Members take ALPHA to Earn more Fees from the Ecosystem
ALPHA staking benefits are compounded automatically for users. For example, if you stake 1000 ALPHA and receive 100 ALPHA rewards, the total sum of the staked ALPHA is 110 ALPHA tokens. The subsequent reward distribution will assume that you have staked 110 ALPHA tokens.
2) Unlock Unique Features on The Alpha Products
Once you stake the ALPHA tokens, the system will allow you to ‘unlock’ other unique Alpha products features. ALPHA is the first to integrate its tokenomics with direct usage of the underlying protocols.
3) Five Alpha Tiers
As an ALPHA token holder, you will be added to one of the five Alpha Tiers depending on the number of ALPHA tokens you stake. This also enables you to unlock more unique features based on your tier level.
4) ALPHA Tokenomics Unites the Alpha Ecosystem
ALPHA tokens will continue to be a binding factor and a vital tool to the growth and development of the Alpha Finance Lab. This function will only increase as the Alpha protocol team continue to build and launch more Alpha products that are more innovative.
ALPHA Price Live Data
As of the 27th of July 2021, the live Alpha Finance Lab price is $0.6294. It has a 24-hour trading volume of USD 179,887,081, indicating that Alpha Finance Lab is up by 9%.
Alpha Finance Lab has a significant CoinMarketCap ranking with a live market cap of USD212,507,749. It has a circulating supply of 285,579,035 ALPHA coins and a max. supply of 1,000,000,000 (1 billion) ALPHA coins.
Conclusion of Alpha Finance Lab Review
Following this Alpha Finance Lab review closely, you will notice that the protocol is young even with its robust developments. It is founded by Tascha Punyaneramitdee only as there is no information that Tascha has a co-founder. The protocol was launched in 2020, like a year ago.
It was designed with many unique features that make it different from other Defi protocols. These features include its products, as already discussed above. The Alpha Finance Lab seeks to address the major issues users face in the Defi industry, including the high gas fees. It has a native token referred to as the ALPHA crypto or coin that powers the platform.
However, from ALPHA live price data, investing in Alpha Finance Lab is not bad as it records a reasonable increase in value. But it is always beneficial to do thorough research and token analysis before becoming an investor.
We hope you find reading this Alpha Finance Lab review worthwhile. We also recommend you visit the protocol’s official web page for more information and clarification.