We are excited to announce Alpha Homora liquidity mining part 2A that will run from November 12th, 12pm UTC - December 12th, 12pm UTC.

4,000,000 ALPHA will be distributed to users who open leveraged positions (aka ETH borrowers) on Alpha Homora during this period. This includes leveraged yield farming and leveraged liquidity providing.

Leveraged yield farming

Leveraged liquidity providing

Why are we only distributing ALPHA to borrowers? What about the lenders?

ETH lenders bear minimal risk when compared to borrowers on Alpha Homora. Hence, by giving liquidity mining rewards to borrowers, they will be getting higher risk-adjusted returns, be more likely to borrow more ETH (increasing asset utilization rate), and thus be paying higher interest rate on ETH to lenders.

While ETH lenders may not directly get liquidity mining rewards from this liquidity mining part 2A, they will be getting higher lending interest rate on ETH (up to 50%), which is the highest lending rate that they can find in the market.

Also, lenders can actually earn ALPHA from liquidity mining part 2B that we will share more details soon! πŸ‘€

How to open leveraged yield farming positions on Alpha Homora?

  1. Select yield farming pools that support more than 1x leverage.

2. Enter how many ETH or another token (or both) you want to use to farm, select leverage level that is more than 1x, then click farm.

An example below shows ETH/DPI leveraged yield farming pool.

To learn more about Alpha Homora product, see here.

How to open leveraged liquidity providing positions on Alpha Homora?

  1. Select liquidity providing pools that support more than 1x leverage.

2. Enter how many ETH or another token (or both) you want to supply to liquidity pools, select leverage level that is more than 1x, then click farm. An example below shows ETH/YFI leveraged liquidity providing pool.

To learn more about Alpha Homora product, see here.

How will ALPHA be distributed to eligible Alpha Homora users?

Eligible users will get ALPHA based on how many ETH they borrow proportionate to the total ETH borrowed from Alpha Homora.

How to claim your ALPHA?

Accumulated ALPHA earned will be shown on the top right corner of Alpha Homora. Users will be able to claim ALPHA on a weekly basis by clicking on your wallet address then clicking claim.

For instance, ALPHA earned from your activity during the 1-week period of Nov 12th, 12pm UTC - Nov 19th, 12pm UTC will be available for you to claim on Nov 19th, 12pm UTC onwards.

On Nov 26th, 12pm UTC (end of 2nd week), you will be able to claim rewards earned during Nov 19th, 12pm UTC - Nov 26th, 12pm UTC along with any past rewards that you haven’t claimed yet.

The same process applies for the 3rd and 4th weeks.

What do eligible users gain and what are their risks?

πŸ§™β€β™‚οΈ Leveraged yield farmers

Gains

  1. Earn ALPHA πŸ’₯
  2. Earn trading fees on leverage for providing liquidity to pools
  3. Earn farmed token on leverage (e.g. UNI, SUSHI, INDEX, PICKLE)
  4. Farmed token earned is automatically reinvested and added to your yield farming position

Risks

  1. Impermanent loss

Since you are providing liquidity to Uniswap or Sushiswap by farming in these pools, you are exposed to impermanent loss risk.

2. ETH price going up can cause your position value to decrease

When opening a position with leverage, you are borrowing ETH. Some of the ETH borrowed is being swapped to another token (sold to buy another token), so you have both assets in equal value to supply to liquidity providing pools. Hence, by opening a position with leverage, you are effectively shorting some ETH. As a result, your position value can decrease when ETH price goes up and increase when ETH price goes down relative to another token (e.g. DPI for ETH/DPI pool)

πŸ§™ Leveraged liquidity provider

Gains

  1. Earn ALPHA πŸ’₯
  2. Earn trading fees on leverage for providing liquidity to Uniswap or Sushiswap (for ETH/SUSHI pool)

Risks

  1. Impermanent loss

Since you are providing liquidity to Uniswap by providing liquidity in these pools, you are exposed to impermanent loss risk.

2. ETH price going up can cause your position value to decrease

When opening a position with leverage, you are borrowing ETH. Some of the ETH borrowed is being swapped to another token (sold to buy another token), so you have both assets in equal value to supply to liquidity providing pools. Hence, by opening a position with leverage, you are effectively shorting some ETH. As a result, your position value can decrease when ETH price goes up and increase when ETH price goes down relative to another token (e.g. YFI for ETH/YFI pool)

To learn more about Alpha Homora product, see here.

About Alpha Finance Lab

Alpha Finance Lab is an ecosystem of cross-chain DeFi products that will interoperate to bring optimal alpha returns to users. Alpha products focus on capturing unaddressed demand in DeFi in an innovative and user friendly way.

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