Alpha Homora

Yield Aggregator

Alpha Homora is a liquidity management protocol that innovated the concept of leveraged yield farming. It allows users to leverage their liquidity positions to enhance their yield.

Risk Rating
Good
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Alpha Homora innovated the concept of leveraged yield farming to provider users with more attractive yield via a simple user interface.
What we like less
The use of leverage requires users to actively monitor their positions to avoid potential liquidations. Impermanent loss risk is also amplified by the leverage that users take.
What it means for you
Optimizes your yield farming experience through a better user experience, integration of borrowing to leverage returns, and auto-compounding protocol rewards.
Information
Info
  • Website
  • Token: ALPHA
  • Tags: Yield Aggregator
Key Metrics
  • TVL: $100.9M (Rank #77)
  • TVL Ranking by Yield Aggregator: #0
  • Blockchain: Ethereum, Binance, Avalanche, Fantom, Optimism
  • Chain TVL
    • Ethereum: $97.43M
    • Binance: $2.55M
    • Avalanche: $800.79K
    • Fantom: $52.73K
    • Optimism: $24.04K
Risk Assessment
Good
Protocol Code Quality
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
Things to know about Alpha Homora

How Alpha Homora works

Alpha Homora is a DeFi protocol that allows users to amplify their yield farming positions through leverage. Besides yield farming, Alpha Homora is also a leveraged liquidity protocol as it supports lending and allows users to earn higher yield on their loans. The protocol uses Cream's liquidity to take on leverage for its users, which enables Alpha Homora to take out loans wiht fewer collateral requirements. Users have the option to lend over 10 crypto assets including ETH, DAI, USDT, USDC, YFI, SNX, among others. The yield is generated from the borrowing interest rate that leveraged yield farmers pay for borrowing the asset. Leveraged yield farming is available on several prominent DEXs including Curve, Balancer, Sushiswap, and Uniswap. Liquidators can perform liquidations on active positions that are at a 100% debt ratio to earn up to 5% bounty incentives.

How Alpha Homora makes money

The protocol currently earn fees from 10% of all borrowing interest across its various iterations of Alpha Homora. Distribution of these fees are as follows: 75% currently goes to stakers, 5% to the protocol treasury for developer grants, and 20% to repay outstanding debt owed to Cream that resulted from an exploit.

How you make money on Alpha Homora

You can earn yield by supplying liquidity to a specific pool and choosing your desired leverage level to ampiify your returns. You can also deposit assets into the lending pool for the leveraged yield farmers to borrow, and earn borrowers' interest payments. ALPHA stakers currently earn 75% of all platform fees, and will rise to 95% once the Cream debt is retired.