Bankless AMA with Tascha from Alpha Finance
Feb 18, 2021
Dive into the world of DeFi with insights from Alpha Finance’s Project Lead. Discover how she transitioned from investment banking to pioneering innovative products like Alpha Homora. Learn about the challenges of yield farming and the significance of mathematical skills in driving innovation. Unpack the launch of synthetic stocks and how they might integrate with Alpha’s ecosystem. Plus, get the scoop on Alpha X’s unique features and the benefits of community engagement for future growth!
AI Snips
Chapters
Transcript
Episode notes
Yield Generation Mechanism
- Alpha Homora generates yield through a main strategy of supplying liquidity and borrowed funds to selected pools.
- The APY comes from yield farming, trading fees, Alpha rewards, and borrowing interest rates.
Leveraged Yield Farming Risks
- Leveraged yield farmers on Alpha Homora face liquidation risk if their debt exceeds their collateral.
- Monitor your debt ratio, as liquidators can take 5% of your position value if liquidated.
Three-Slope Interest Rate Model
- Alpha Homora V1's interest rate model utilizes a three-slope curve for higher utilization assets.
- It creates stability by keeping borrowing APY flat between 80-90% utilization, benefiting both borrowers and lenders.