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Alfprotocol Shares Its Solana-Based Yield Farming as Part of DeFi Package

Tue, 11/23/2021 - 07:57
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Arman Shirinyan
Alfprotocol provides both leveraged and unleveraged solutions for investors who are willing to provide liquidity
Alfprotocol Shares Its Solana-Based Yield Farming as Part of DeFi Package
Cover image via stock.adobe.com

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Contents

Alfprotocol is the DeFi solution for investors with various risk-management strategies. The solution provides leveraged and unleveraged products that are suitable for both new and experienced traders. The solution is built on the Solana blockchain that manages decentralized finance perfectly.

Unleveraged liquidity pools

Alfprotocol solution on Solana offers two main packages for investors, one of which is the AlfMM. It is an autonomous market maker working on top of the decentralized exchange. The service is capable of reallocating unused liquidity to the leverage protocol. AlfMM uses AMM for executing orders on the exchange.

Traditional AMM solutions are being utilized for order flow and price formatting, which allows users to acquire the best possible price between the AMM and Serum.

The second solution for investors is the AAlf—Allotment Alf money market solution—for utilizing single-asset pools for liquidity providers and overcollateralized borrowing. The solution segregates the two pools and manages each one separately.

The main purpose of the two main unleveraged Alfprotocol products is to create a low-risk environment for investors who are willing to provide liquidity and to trade while providing liquidity for the leverage protocol on the background.

Products for leveraged LP

For traders and investors who are willing to use borrowed funds to amp up their own performance, Alfprotocol presents a leverage feature system that enables leverage on the Solana blockchain. The protocol uses a connector module to provide high APY outside of the Serum protocol.

To ensure liquidation, "The Treasury" module will track position collateralization and funding at all times.

Lockbox technology is also utilized with the protocol. The system allows for wrapping fungible tokens, which enables trading for leveraged LP position health. Alfprotocol's users are eligible to use multiple lockboxes as collateral for a single position.

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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.