Homora is the first flagship product of Alpha Venture DAO‘s Build and decentralized finance (DeFi’s) first leveraged yield farming system. Since the first release of Homora V1 on Ethereum in October 2020, the product has seen tremendous adoption and usage, prompting its extension to Binance Smart Chain (BSC).
Later, the Homora team continued to make innovations, listened to community input, and saw the necessity to build Homora v2 on Ethereum with upgraded technology and functionality. Homora V2 spreads to more chains to decrease entry barriers and provide users with more leveraged yield farming options. Homora V2 is now accessible on four chains: Ethereum, Avalanche, Fantom, and Optimism.
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In Homora V2, three parties play critical roles: lenders, yield farmers, and liquidators.
- Lenders can lend various assets, such as ETH and USDT on Ethereum, AVAX and USDT.e on Avalanche, and FTM and fUSDT on Fantom. Lenders on Homora can earn a higher lending interest rate than most other lending protocols because the lending interest is generated by leveraged yield farmers/liquidity providers who borrow these assets to yield farm/provide liquidity.
- Yield farmers/liquidity providers may undertake leveraged yield farming/liquidity provision on various asset pairings and DEXes of their choice. This results in greater farming APYs and trading costs than traditional yield farming with no leverage. Homora would borrow the specified assets on behalf of the users to generate a farm using leverage.
- Liquidators can earn up to 5% reward incentives by liquidating active holdings with a 100% debt ratio.
What makes Homora V2 Unique?
1. The First Leveraged Yield Farming Platform in the World
The Alpha Venture DAO team is the original inventor of leveraged yield farming. Homora is the first leveraged yield farming solution in the DeFi industry.
2. High Returns. Maximum security. Pools of Superior Quality
Farming on Homora V2 has great yield-enhancing rewards but also risks. High risks are naturally connected with asset volatility, which is impossible to manage and foresee. Still, the platform does its best to control what it can to keep its consumers at ease. As a result, they have a robust pool screening and due diligence procedure in place to ensure that they provide high returns on high-quality pools from leading DEXes while ensuring high protocol security to safeguard consumers.
Homora provides high-security measures and transparency to reduce risks, such as:
1. Insurance solutions with InsurACE and Nexus Mutual
2. EOA and Whitelist contracts accessibility
3. Multiple audits by top-tier auditors
4. Protocol is run by a non-anonymous crew, guaranteeing no rug pulling.
When listing new assets and asset pools, Homora applies a few critical factors to improve the quality of the farming experience and provide added protection for their users:
1. Assets must have a supported price input from one of their shortlisted oracles.
2. Selected popular trading pools with high demand from leading DEXes
3. New pools should have a high level of liquidity, trading volume, and yield.
4. Tokens in asset pairings should have a sizeable circulating market cap, moderate volatility, a certain degree of decentralization, and a track record of market existence over an extended period.
3. Versatile Farming with Any Asset Combination
Users can start yield farming with just one asset type. Homora V2 allows you to supply any asset combination without producing an equivalent number of assets for a liquidity pool, as in traditional yield farming. This enables Homora to provide custom yield strategies tailored for any market condition. You may hedge your investments on Homora and farm even in a bear market with flexible borrowing of multiple assets.
Existing LP suppliers may move their positions to Homora V2 by entering the LP token. Take note that the pool must already be listed on Homora V2.
4. Exclusive collaboration with Iron Bank
Homora is working with and fully integrating with Iron Bank or Cream V2 as a source of liquidity to enable their customers to take leverage on multiple assets without having to bootstrap liquidity for all of them independently. This allows Homora V2 to expand rapidly and scale.
Homora V2 and Iron Bank contracts are deeply connected and interoperated, which has never been done previously in the DeFi space. This is the first time a contract (Homora V2) may borrow from a lending protocol (Iron Bank) without collateral, boosting capital efficiency for users. Homora V2 will borrow money from Iron Bank and provide it to its consumers as leverage. Users can therefore benefit from higher lending interest rates while Iron Bank reaps benefits as well.
5. Alpha Oracle Aggregator
Alpha Oracle Aggregator integrates top-tier cross-chain oracle service from Band Protocol and Chainlink to ensure that the pricing feed is always reliable. This also ensures that their solution can continue functioning even if one Oracle service is out of sync.
ALPHA serves as the governance token for Alpha Homora and the DeFi application package. ALPHA is a utility coin that also serves as a governance token. It was invented by Alpha Finance Lab, and an ERC-20 ALPHA token powers it. Holders of the ALPHA token can vote on open proposals, updates, and money allocations on specified platforms. The ALPHA token governs the Alpha Homora protocol and the Alpha Finance Lab suite of DeFi apps. The ALPHA governance tokenomics system is divided into Alpha Finance and product-level governance.
Product-level governance lets ALPHA token holders vote on platform modifications and money allocations. Alpha Homora, Alpha Lending, and, soon, AlphaX are all part of this. Holders of Alpha Finance tokens can vote with their ALPHA tokens on how all Alpha applications will interact.
The ERC-20 ALPHA coin was Binance’s first-ever double launch. ALPHA entered the market through a Launchpad token sale and Launchpool token farming. All 100 million ALPHA tokens were sold to participants during the Launchpad token sale. Despite being released on Ethereum, the ALPHA token was merged with Binance Smart Chain in November 2020 to enable seamless cross-chain token transactions.
As the Alpha Homora protocol evolves and grows in popularity, the ALPHA token’s usefulness will increase. This includes offering liquidity and staking in exchange for special interoperability features amongst Alpha products.
Interest-bearing Ethereum vault
Through an interest-bearing position on Alpha Homora, you may accumulate interest on your ethereum holdings. You can deposit ETH into the Alpha Homora Bank in exchange for ibETH tokens. These ibETH tokens are marketable assets that generate interest and reflect your proportionate part of the ETH in the Bank pool.
Borrowers’ interest is paid to lenders according to their part of the pool. The bank’s usage rate decides the interest rate. The greater it is, the higher the interest rate. Simply said, the higher the interest rate, the greater the demand for borrowing.
A percentage of the interest collected is saved in a treasury, which serves as an insurance reserve against black swan events.
The Alpha Finance ecosystem has reached a critical milestone with the introduction of Alpha Homora. The ability to enter leveraged liquidity mining positions is a significant breakthrough for the DeFi market.
While yield farming is the key selling point, its Ethereum accounts, which bear interest, might also entice more experienced users. The blockchain community may have several ways to connect with this platform when combined with the possibility of becoming bounty hunters or liquidators.