DeFi platform Alpha Homora announced the relaunch of its v2 leveraged yield farming program, ALPHA token prices soar
At press time, ALPHA is up over 16% on the day, trading around $2.25. The reason is that Alpha Homora announced the relaunch of its v2 leveraged yield farming program and total value locked (TVL) soar.
Alpha Homora defies market slump, bolsters TVL and token price on v2 relaunch
Alpha Finance Lab’s Twitter page has also announced that Alpha HomoraV2 currently owns admirable numbers like $675 million TVL, $500 million lent, about $170 million collateral, and $99 million borrowed.
Furthermore, although the demand to use the product is high, the project will still maintain the security measures that we set out to do by keeping the $100M credit limit for now.
#AlphaHomoraV2 now has…
👉 $675M TVL
👉 $500M lent
👉 $170M collateral
👉 $99M borrowed
Though the demand to use the product is high, we’ll maintain security measure that we set out to do by keeping $100M credit limit for now.
Will actively monitor & increase accordingly
— Alpha Finance Lab (@AlphaFinanceLab) May 13, 2021
After a rough first quarter, decentralized finance (DeFi) platform Alpha Homora has announced the relaunch of its leveraged yield farming program v2. Reportedly, version 2 of the platform, which allows up to 7x leverage on popular yield farming positions across protocols like Sushi, Curve, and Balancer, has notably closed. doors to move to new positions following a devastating hack in February. The protocol suffered a $37 million loss, which is counted as one of the most devastating exploits in DeFi history. The relaunched v2 also comes with a new set of tests, but ultimately, the biggest test of the DeFi protocol is time – the longer it survives the scrutiny of miners. Many users trust its longevity.
However, the relaunch has so far been affected by many metrics. ALPHA – which underwent an improved new economic design during the shutdown – grew 11.1% to $2.28 on the day, and TVL has raised nearly $100 million since relaunch to a total plus $675 million.
Now it remains to be seen how long the protocol will remain stable. Aside from the February mining, the platform was tied to Rari Capital’s $11 million loss earlier this week, although that particular mining was not due to Alpha Finance Lab’s fault.
Some observers are also unhappy with Alpha’s unusual pattern, which has little precedent in Tradfi.
However, Leo Cheng of C.R.E.A.M. Finance, whose Iron Bank protocol-to-protocol lending platform enables v2’s leveraged yield farming, argued that:
“If flash loans can be a key cog in DeFi’s capital efficiency, leveraged lending is a logical next step.”
In essence, the smart contract doesn’t care much and it doesn’t quite see the boundaries with smart contract projects in regards to where the funds come from. As long as a transaction will end up with different protocols regarding green, the transaction will be done.
Co-founder Tascha Panpan says that she believes the protocol can become an established pre-DeFi lego.
“Alph Homora is Alpha Finance Lab’s first product and DeFi’s first leveraged yield farming product. Through several unique and useful functionalities built-in on Alpha Homora v2, the product will further establish itself as the go-to leveraged yield farming/liquidity providing and lending protocol in DeFi.”
ALPHA/USD 4-hour chart | Source: TradingView
At press time, ALPHA is trading around $2.21, up over 16% on the day.
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