As innovation in the decentralized market continues to grow, automated market makers (AMMs) are increasingly popular.
In the past two years, the demand for alternatives to centralized exchanges has been growing exponentially with the introduction of “Know Your Customer” (KYC) regulations and the implied interest shown by the “Securities and Exchange Commission” (SEC) on cryptocurrencies and crypto exchanges. In addition, as decentralized exchanges’ customers’ numbers continue to increase, more and more products and services are being introduced to cater diverse interests of new users.
Alfprotocol will utilize Solana’s blockchain to expand on decentralized liquidity provision and yield farming with previously unseen leverage ranging up to 20x.
Protocols will allow traders to effectively manage capital and provide liquidity (LP) for AlfMM, a decentralized exchange and AAlf. This allows for liquidity provision for both unleveraged and leveraged via external protocols that are managed by Alfprotocol.
Alf Leverage 101
Solana’s Alfprotocol comprises several modules that will work together to provide users with a complete intermediary product that will facilitate liquidity provisions.
The core module that handles collateral and tracking leveraged positions is the Treasury. The treasury module will handle all interactions using the leverage protocol. It will also be responsible for borrowing funds. The treasury will not be responsible for any position liquidation, initiation or termination. Instead, the auction module will handle the liquidation and liquidation of unhealthy positions.
The protocol connectors are another core group of modules that allow users to initiate and modify positions. These modules can also be used for connecting with liquidity pools and external liquidity sources. As long as positions are in a healthy condition and not under liquidation triggers, they are considered part of the core module set. Alfprotocol will continue developing and expanding connector modules to other Solana platforms to incorporate more use cases that suit users’ requirements.
Last module, the lockbox module, will be used to secure collateral and track positions. Lockboxes will be automatically created for leveraged users’ positions by initiating a wrapper on the deposited tokens to incorporate them into the Alfprotocol.
Alfprotocol, an extensible protocol that offers many benefits and liquidity with high leverage, is designed to provide solutions for investors and traders in decentralized markets using Solana’s blockchain.
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.