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Tascha Punyaneramitdee, founder of Alpha Finance Lab, introduced leveraged liquidity mining products and the next step.
Recommended reading: ” ALPHA: DeFi Trojan Horse Created by the Great God of Mathematical Mathematics Hall of Fame “
Original Title: “Founder of Alpha Finance Lab: Analysis of Product Features, Operation Process and Development Plan”
Written by: Nick Sawinyh
This article is an interview with Tascha Punyaneramitdee, the founder of Alpha Finance Lab. He introduced the leveraged liquidity mining products and the next step of Alpha Finance Lab.
Hello there! who are you? What is your background and what are you doing?
My name is Tascha Punyaneramitdee, the co-founder and project leader of Alpha Finance Lab. I studied economics at the University of California, Berkeley, and started my career in San Francisco, then worked as a technology investment banker in London. Previously, I worked in the product management team of Tencent in Thailand and later joined Band Protocol as the head of strategy. After that, I left and founded Alpha Finance Lab with Nipun Pitimanaaree. During my career, I have always been interested in technology and finance, so after realizing that the industry needs to seize some market gaps before entering the next stage of development, I followed DeFi for a long time before starting Alpha Finance Lab.
Alpha Finance Lab is building an ecosystem of DeFi products that will cooperate with each other to maximize benefits for users while minimizing risks.
Alpha products focus on capturing unresolved needs in DeFi in an innovative and user-friendly way. Although each Alpha product can solve the market gap in the industry where the product is located, each Alpha product will subsequently work together in the form of an Alpha ecosystem.
The first Alpha product is Alpha Homora, which is a leveraged liquid mining product, which is also the focus of this interview.
Alpha Finance Lab’s investors include The Spartan Group, Multicoin Capital and DeFiance Capital.
Who are your competitors?
Since Alpha Finance Lab is building an ecosystem of DeFi products, the competitors of each product will be different.
Alpha Homora is the first agreement to provide leveraged liquidity mining services. Although some people compare Alpha Homora with revenue aggregator, we think that both Alpha Homora and revenue aggregator will benefit from the cooperation. Specifically, the revenue aggregator can use the leverage function provided by Alpha Homora to increase the usage of its protocol.
AlphaX is a perpetual swap trading product and the second Alpha product (currently on the private testnet). However, AlphaX does not directly compete with other perpetual swap products, because AlphaX is actually expanding the TAM (total addressable market) of the DeFi market segment, and the target user is anyone who participates in DeFi. , Not the perpetual swap traders currently trading on centralized exchanges.
Considering these target users, we built AlphaX to incorporate funds into the price (so DeFi users don’t even need to know the interest rate of funds), and tokenize leveraged positions (so DeFi users can use these tokens in other DeFi platforms).
What is the story behind Alpha Homora?
Since we are not limited to building products in a specific field, but focusing on the ultimate goal of maximizing revenue for users while minimizing downside risks, we were able to discover two huge market gaps and create one Innovative solutions to solve these problems.
The two market gaps are:
Market gap 1: Many ETH holders hold low deposit rates
Market gap 2: Many miners are looking for higher liquidity to mine APY
In order to seize the gaps in these two markets, we created DeFi’s first leveraged liquidity mining product-Alpha Homora. Since the launch of Alpha Homora in October 2020, good product market fit has been reflected, with TVL exceeding US$600 million. This TVL comes from two user groups:
1. Liquidity miners, they can obtain higher APY through leveraged mining on Alpha Homora.
2. ETH lenders, who lend ETH on Alpha Homora can get high interest. The high interest rate comes from the borrowing interest rate of leveraged miners when opening leveraged positions.
About Alpha Homora v2 Can you tell us more about it?
Alpha Homora V2 will further become a leveraged mining protocol for DeFi. With the scalable structure of Alpha Homora v2, through integration and cooperation with major partners such as Cream, SushiSwap, Curve and Balancer, Alpha Homora v2 will gain more user groups and continue to grow into one of the key components in DeFi . Alpha Homora v2 has passed the audit of Quantstamp and Peckshield.
What are the main features and functions of Alpha Homora V2?
Enable leveraged liquidity mining for liquidity pools on Curve, Balancer, SushiSwap and Uniswap
Leveraged miners can use a variety of assets, such as ETH, stable coins, etc.
For stable currency leverage, users can open positions up to 9 times
Flexible leveraged mining-users can easily borrow multiple assets, re-leverage and deleverage
Alpha HomoraV2 will not automatically sell the mining tokens for reinvestment, because we want to help the development of the partner community
Similar to Alpha Homora V1, users do not need two tokens of equal value to provide liquidity or carry out income farming
How to operate leveraged liquidity mining in Alpha Homora V2?
Leveraged liquidity mining only requires 4 simple steps:
1. Select the fund pool in Alpha Homora V2. Alpha Homora V2 will enable leveraged mining in the liquidity pools on Curve, Balancer, SushiSwap and Uniswap.
2. Provide any 2 tokens for the pool. For example, when performing leveraged liquidity mining on the ETH/USDT pool on SushiSwap, you can provide only ETH or USDT, or both.
3. Enter the leverage level at which assets can be borrowed, and multiple assets can be borrowed. In the example below, you can choose to borrow ETH or USDT
4. Finally, confirm the strategy. After that, Alpha Homora will take care of everything for you
What is “Iron Bank” in Alpha Homora v2?
In order to enable Alpha Homora v2 users to use many assets, not just the ETH in Alpha Homora v1, without having to increase liquidity for all assets by ourselves, we have cooperated and deeply integrated with Cream v2 as a source of liquidity. Specifically, Alpha Homora v2 can borrow from Cream v2 with insufficient collateral (Cream calls it Iron Bank ). This integration is not only a more efficient way of borrowing, but also the first realization of corporate borrowing between smart contracts and insufficient mortgage lending in DeFi.
What is your future goal?
In addition to Alpha Homora v2 and AlphaX, we will build more Alpha products this year. For each Alpha product, we will continue to deliberate until we find the product market fit, increase the conversion rate of product use, and provide value accumulation for ALPHA token holders.
In addition, our goal is to allow Alpha products to have more integration with each other in order to build a strong Alpha ecosystem to help users maximize revenue and minimize downside risks.
What are your thoughts on the future of the DeFi market?
In 2021, we will continue to see more growth in the AMM field. As AMM continues to grow, the risk of impermanent loss will become more prominent. Others may think this is an obstacle, but we think this is an opportunity to create another Alpha product to solve this market gap. In fact, the third Alpha product is in the early product development process. This product hopes to minimize the risk of impermanent loss for DeFi users.
The second trend and opportunity I see is the growth of the on-chain derivatives market. In 2020, the main components of the financial system have been built, such as decentralized spot trading platforms, lending platforms and synthetic assets. These basic components will become the basis for DeFi to enter the next stage of growth, which will be driven by the derivatives market, which is much larger than the spot market. At Alpha Financial Lab, we hope to capture this major demand and trend through AlphaX.
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