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Alfprotocol Presents High-Leveraged Products Powered by Solana Blockchain

Wed, 11/24/2021 - 07:55
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Arman Shirinyan
Alfprotocol continues to make the decentralized finance industry more suitable for sophisticated use and leveraged liquidity provision
Alfprotocol Presents High-Leveraged Products Powered by Solana Blockchain
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Alfprotocol moves forward with its Automated Market Makers (AMM), unique innovations and developments in the decentralized market.

The alternative to centralized exchanges has grown exponentially, especially after the introduction of KYC regulations and further regulations coming from the Securities and Exchange Commission. The number of decentralized exchanges is continuously increasing and, what's more, products are joining the decentralized finance fields.

Alfprotocol will join the Solana blockchain to expand its decentralized finance offering and yield farming and leverage solutions. The protocols are being used to handle capital deployments between traders and investors. Alfprotocol uses two different technologies for various types of investors.

AAlf (overcollateralized borrowing services) and AlfMM (decentralized exchange services) are two services that provide liquidity. The protocols are able to handle providing leveraged liquidity via external protocols.

Alf Leverage

Solana's Alfprotocol uses several modules that work together to provide users with an intermediary product for efficient liquidity provision.

The treasury by Alfprotocol is one of the core modules that will handle collateral and the tracking of leveraged positions. The treasury is the foundation of all interactions with leverage protocol; it tracks the collateralization and health of every open position on-chain.

Whenever an unhealthy position gets flagged by the treasury, the second module, an automated auction module, will be triggered.

Other modules inside the protocol are responsible for initiating and changing positions that are flagged by the treasury module. The mentioned modules are responsible for connecting the treasury with the user's external liquidity pools. Whenever a position remains in a healthy state and is not subject to a liquidation trigger, it is connected to the treasury model.

Alfprotocol is continuously developing and expanding connector modules to other Solana platforms to create even more solutions that will enhance the liquidity-providing process to meet users' requirements.

Last, but not least, is a lockbox module that secures the collateral and tracks the value of each position on the network. Lockboxes are automatically created whenever the user opens a leveraged position by initiating a wrapper on the deposited tokens.

Alfprotocol is a one-for-all extensive protocol with numerous underlying advantages and high leverage liquidity. It provides solutions for decentralized market traders and investors by using the Solana blockchain.

The protocol still remains in development, and more technical information is available on the official website of the project and the released whitepaper.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.