In the previous blog post, we have explained Alpha Homora v2 from yield farmers’ perspective. Another perspective that is equally important to understand is lenders’ perspective.

Lenders’ Perspectives

There are 2 simple steps to lending assets on Alpha Homora v2.

  1. Go to Earn page and click Supply on the asset you want to lend

2. Specify the amount you want to lend

On the Earn page, lenders can see a number of assets that they can lend (the above images show only a sample of them). The supported assets on the lending side are correlated to the assets that yield farmers can take leverage on.

Specifically, Alpha Homora v2 will allow yield farmers to take leverage on ETH, USDT, USDC, DAI, YFI, DPI, etc. This means that lenders will be able to lend any of these assets and receive the corresponding ibTokenV2 back (ibETHv2 for ETH, ibDAIv2 for DAI, ibYFIv2 for YFI, etc.).

Note: ibTokenV2 is an interest-bearing token received upon lending asset on Alpha Homora V2.

💡 Hint: This is the step where ALPHA tokenomics will come in to allow lenders to earn higher lending interest rates. Stay tuned!

Risks

Lenders don’t bear risks from impermanent loss and liquidation risks from leveraged positions like the protocol’s yield farmers. Instead, lenders share the risk of debts accrued by underwater positions in case liquidators did not liquidate in time. Note that this scenario has never happened in Alpha Homora V1.

What’s Next?

Up next, we will share more details on the migration process and how the liquidity mining program will run across Alpha Homora v1 and Alpha Homora v2 during the migration process.


About Alpha Finance Lab

Alpha Finance Lab is building an ecosystem of DeFi products that will interoperate to maximize returns while minimizing downside exposure to users. Alpha products focus on capturing unaddressed demand in DeFi in an innovative and user friendly way.

We are moving at a rapid pace, so we encourage everyone to join our Telegram / Discord to discuss with our community, follow us on Twitter, or read more about us on the project document and our Blog!