Alfprotocol: A Solana-Based Leveraged Yield Farming

Alfprotocol, a Solana-based protocol for the capital deployment of liquidity provision and leveraged and non-leveraged farming, is created to accommodate traders with a variety of appetites for risk aversion.

In detail, it provides leveraged and non-leveraged products that would cater to both beginners and expert traders in a decentralized ecosystem. Alfprotocol is powered by Solana, one of the leading blockchain networks well-qualified to deal with the core requirements of a DeFi platform.

Furthermore, Solana’s Alfprotocol has two primary packaged products for unleveraged pools. It takes the form of AlfMM and AAlf. Certainly, the essence of the two products is to provide liquidity for the leverage protocol.

AlfMM is an on-chain autonomous market maker (AMM) decentralized exchange (DEX) service. It is used to reallocate unused liquidity to the leverage protocol. AlfMM will use the AMM side order execution to attain a bidirectional integration between Treasury and the AMM.

Allotment Alf (AAlf) is a money market solution that uses single-asset pools for liquidity providers (LPs).  It also serves as an overcollateralized debt position for borrowers. Here, each pool’s asset acts as a base for computing pool utilization and interest rates. This means all pools are managed separately.

Conversely, Alfprotocol leverage feature allows traders to enter positions utilizing the Solana blockchain. The protocol will use its connector module which achieves the highest APY and efficiency in capital provision by using business logic to enter positions outside Serum protocol.

On the other hand, another model named the ‘The Treasury’ will help track positions’ health always by storing a tokenized depiction of the collateral. As well as the position’s debt made in lockboxes under its control and being linked with an oracle.

The Lockboxes are essentially the main technical solution for leveraged IP position health and collateral tracking. As a result, Lockboxes will be utilized inside the leverage protocol by wrapping fungible tokens. Above all, Alfprotocol’s users will be able to multiple Lockboxes as collateral for a single position.

Alfprotocol is currently in development. Please visit the website and check out the whitepaper to find more info about the project and stay updated with the project’s current progress.

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