A Solana Based Leveraged Yield Farming

One Of The Many Case Uses Of Solana’s Alfprotocol

AlfprotocolIt was created for traders who have different risk appetites. The product offers both leveraged products and non-leveraged options that will suit new and experienced traders. It is powered by Solana which is a strong blockchain that can handle core financial requirements on a decentralized platform.

Solana proved itself to be an alternative to Ethereum and L1 solutions like Ethereum, which have many flaws when they are tested with significant user traffic.

Unleveraged Liquidity pools

Solana’s Alfprotocol offers two main packaged products for the unleveraged pools in the form of:

  1. AlfMM – an on-chain autonomous market maker (AMM) decentralized exchange (DEX) service capable of reallocating unused liquidity to the leverage protocol. AlfMM uses AMM side orders execution in order to accomplish a bidirectional integration of AMM and Treasury. AMM serves as an order source and splits operations to determine the best price option. Serum also has a DEX aggregator attribute.
  2. AAlf – Allotment Alf is a money market solution that utilizes single-asset pools for liquidity providers (LPs) and overcollateralized debt positions for borrowers. Pools are handled separately, with each pool’s asset acting as a base for computing pool utilization and interest rates.

They are intended to be a trading platform and liquidity provider for those who don’t want to take on risk.

The Leveraged Liquidity pool

Alfprotocol’s leverage feature is a system that enables traders to enter positions with leverage using the Solana blockchain. To achieve maximum APY, the protocol will use its connectors module. This uses business logic to allow traders to leverage positions that are not covered by protocol Serum. In addition, to ensure sound liquidation, yet another module called  “The Treasury” will track positions’ health at all times by keeping a tokenized representation of the collateral and positions debt made in lockboxes in its custody and being linked with an oracle.

By wrapping tokens that are fungible, lockboxes can also be used in the leverage protocol. These are key technical solutions for tracking collateral and ensuring health in leveraged lp positions. Alfprotocol’s users will be able to use multiple lockboxes as collateral for a single position.

AlfprotocolThe project is in progress. To find more info about the project and stay updated with the project’s current progress, please visit the website and check out the whitepaper.



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