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Friday, April 19, 2024

AlfProtocol Airdrop Review: Leveraged Liquidity Provision dApp

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About AlfProtocol Airdrop

AlfProtocol Airdrop is a protocol for capital deployment on Solana for the purposes of liquidity provision and yield farming, both with and without margin of up to 200x. The protocol introduces its own versions of an invariant-based Automated Market Maker protocol for exchange operations and a money market for short-term loans.

AlfProtocol and Secretum are jointly giving away a total of 250,000 ALF + 2,000 SER to 50 lucky giveaway participants. Sign up for the giveaway and complete simple social tasks to earn entries. Also earn more entries for each referral. A total of 50 participants will be randomly selected to win 5,000 ALF + 40 SER each.

PlatformAirdrop EndsMax. ParticipantsWebsite
Solana2022-04-04UnlimitedClick Here To Visit

Step No 1

Register for the AlfProtocol Airdrop, by creating an account.

Step No 2

Verify your email & log in to your account.

Step No 3

Take part in the referral program and invite 3 friends.

Step No 4

Join AlfProtocol Airdrop on Telegram group & Telegram channel

Step No 5

Follow AlfProtocol Airdrop on Twitter & like/share the pinned tweet and tag 3 friends.  

Step No 6

Like/follow AlfProtocol Airdrop on Facebook & like/share the pinned post.  

Step No 7

Submit your details to the Avault Airdrop form. 

Evan Luthra

Evan is Forbes 30 under 30 winner, at 27 years old he has an already impressive resume and career history.

Evan is an accredited Angel investor and invests in a variety of digital projects and businesses.

Over the past five years, Evan has built and invested in over 300 companies across several verticals.

Luthra is also a featured speaker at several universities around the globe, having taken centre stage at the United Nations, Google, Nielsen, Delhi University, Washington State University, and more.

Evan is also a well known influencer with millions of followers across various Social Media platforms and have been featured on multiple TV shows and press sites.

Evan believes in in stepping out of the comfort zone and exploring the power of conceptualization, innovation and execution.

There are four sources of yield in Alf:

Interest rate paid by the borrowers who need short-term access to liquidity (this notion also includes arbitrageurs and other users of the flash loan functionality).

Leveraged protocol profit fee on auto-compounded yield rewards

Trading fees from AlfMM, the internal AMM DEX solution.

And token incentives nominated in the platform token (ALF), paid to incentivize liquidity provision in certain pools.

Technology

All of the components are fairly standard and represent well-known primitives:

  • Liquidity pools
  • Lending module
  • Constant-product AMM
  • DAO contracts

The future-proof flexibility is achieved by uncoupling the key components through standardized interfaces that allow enabling and disabling modules at discretion of the team and, later, the protocol DAO.

Yield Optimization

Constant-product AMMs suffer from what is called impermanent loss,— a loss that liquidity providers make when the quote price diverges from the one when they entered their position. When prices diverge, impermanent loss starts to accrue, which is amplified with leverage for a leveraged position, until the position is exited, de-leveraged, or liquidated.

Another solution (offered by Alf) would be to shift the borrowed capital into other types of positions when the market is moving, or automatically exit the position before a loss can grow out of proportion. This is maintained through oracle connections (to monitor prices on external markets and compare them with the AMM prices) and a flexible pool of alternative strategies that the risk-seeking investors can subscribe to.

Liquidity pools

Each liquidity pool is dedicated to its own asset and is treated separately for the purposes of calculating pool utilization and interest rates. Whenever a liquidity provider enters a pool with a deposit, the protocol mints LP tokens representing the share of aggregate deposits. Fees captured by the pool (i.e. interest paid by the borrowers and by the Leverage Protocol users) are added to the pool of underlyings, without diluting share value. Whenever a liquidity provider wants to exit the pool, they burn their shares and receive the pro rata portion of the underlyings, which grew with each interest and fee payment.

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