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.
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.
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.
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.