Alfprotocol: Solana-Based dApp Increasing Capital Efficiency Using Arbitrary Curves

Source : zycrypto.com

Advertisement

&nbsp

&nbsp

Alfprotocol is an interstellar liquidity platform deployed on the Solana blockchain. The core products of this protocol are providing liquidity and yield farming. Alfprotocol is made up of four key features that include: Leveraged Liquidity Provisions, Arbitrary Invariant Swap Market, DAO Module Staking, and Community Governance.

The Platform provides leveraged liquidity provision for its traders with or without a margin of up to 200X. The protocol has its own version of an invariant-based automated market maker for exchange operations and a money market that is for the provision of short-term loans.

Since the protocol runs on Solana Blockchain, it offers lightning-fast transactions thereby protecting the Liquidity Providers from sudden price fluctuations. While ethereum is currently dominant in the defi ecosystem, Solana is a game-changer as it tackles some of the weaknesses of Ethereum. Solana Leverages on Proof of History protocol. This allows validators to be in charge of their own clocks and simplify the transaction verification process. Over 60,000 transactions per second are processed on the Solana Network, making it stand out among its peers.

Transaction costs have also been an impediment in driving the growth of Defi. During peak times, users may pay gas fees of over $50 for a single transaction. On the Solana Blockchain, the cost of a single transaction is usually about $0.05, this is in sharp contrast to the high fees on the Ethereum blockchain.

The Alfprotocol will also offer lower margin requirements for its users. This will be offered without putting to risk the security of the liquidity providers. This is done by assigning a specific factor known as Collateral Factor to each collateral. The community can increase or decrease this collateral factor thereby enabling borrowers to increase or minimize their leveraged positions.

Advertisement

&nbsp

&nbsp

The council will also determine the average ratio of Average liquidity on the pool versus average debt that will be drawn from that pool. Staking on the DAO module will also enable you to decide which collateral is supported on the Alf protocol, add new members to the treasury, and also manage the distribution of Alf .

Leave a Reply

Your email address will not be published. Required fields are marked *