About Alpha Finance Coin
Alpha Finance price today is $1.85 with a 24-hour trading volume of $347,474,429. ALPHA price is up 12.4% in the last 24 hours. It has a circulating supply of 250 Million ALPHA coins and a max supply of 1 Billion. Binance is the current most active market trading it.
What is Alpha Finance (ALPHA) token?
ALPHA is a multi-purpose token that is utilized in Alpha Finance Lab’s decentralized protocol which supports their range of different products.
What is Alpha Finance Lab (Alpha Finance)?
Alpha Finance is a cross-chain DeFi platform which aims to address the underserved markets within the crypto community. In particular, there are two key challenges that Alpha Finance aims to address.
The first challenge is the limited availability of products outside the Ethereum blockchain. Most decentralized applications are developed on the Ethereum blockchain. However, as it becomes more saturated, gas fees increase which drives users to other blockchain platforms. This ties in with the growing popularity of alternatives like Polkadot and Binance Smart Chain.
The second challenge is the lack of liquidity on decentralized exchanges which leads to common issues such as price volatility. At the same time, significant price changes between different assets in a liquidity pool would also lead to impermanent loss for stakers.
By addressing these issues, Alpha Finance hopes to expand the use-cases of DeFi and eventually improve DeFi’s adoption rate amongst the general populace.
How does Alpha Finance Lab (Alpha Finance) work?
Through the development of a variety of Alpha products, Alpha Finance aims to create an ecosystem of products that leverages traditional finance principles whilst operating in a decentralised manner. The central theme for each Alpha product is to maximize returns while minimising downside exposure/risk. Importantly, each product must be able to offer synergies within Alpha Finance’s ecosystem and address DeFi’s main issues.
At the time of writing, the only product available is the Alpha Homora product which enables leveraged yield farming. Users can primarily participate as yield farmers, ETH lenders, or liquidators.
ETH lenders are afforded high interest rates for lending their ETH to yield farmers and liquidity providers. Whenever ETH is borrowed, a fee is paid into the ibETH pool (where ETH lenders stake their ETH) and ibETH is earned as interest. ibETH are tradable assets that continually earn interest and represent a lender's share of ETH in the deposit pool.
With borrowed liquidity, yield farmers are able to take leveraged positions and earn higher farming APY and trading fees APY. The same principle applies to liquidity providers who can leverage their position and earn higher trading fees APY.
Moving forward, Alpha Finance will be introducing more products which includes upgrades to their existing product (Alpha Homora v2) and a new product (Alpha X) that facilitates perpetual swap trading.
What can Alpha Finance (ALPHA) tokens do?
The Alpha Finance ecosystem can be categorized into two (2) different levels. The first level is the Alpha Finance level whereas the second level is the product-level. At the time of writing, ALPHA tokens only act as governance tokens for both levels of the Alpha Finance ecosystem. However, as Alpha Finance develops more products and grows as a community, new use-cases will be introduced for ALPHA which includes:-
- Utility (e.g. provide liquidity or staking ALPHA to receive protocol fees),
- Work (e.g. access to more functionalities on Alpha products); and
- Interoperability (e.g. staking ALPHA in order to unlock interoperability features among Alpha products).
How to obtain Alpha Finance (ALPHA) tokens?
ALPHA tokens can be obtained through two (2) methods.
The first method is buying them from an exchange such as Uniswap and Binance. You can browse through the various centralized and decentralized exchanges by heading over to our exchanges page here. Alternatively, you can check out Alpha Finance’s (ALPHA) markets for an overview of the different exchanges ALPHA is traded on.
The second method is to deposit assets on Alpha Finance's website and earn ALPHA tokens in return for staking. Liquidity providers will earn ALPHA tokens at different rates, depending on the size of their liquidity provided, and the type of pool they are participating in.