Alfprotocol will rely on Solana's blockchain for decentralized liquidity provision and yield farming, offering unprecedented leverage of up to x20. The popularity of Automated Market Makers (TMAs) continues to increase, as innovations and the development of decentralized markets gain ground.
Over the past two years, there has been an increase in demand for alternatives to centralized exchange platforms. This was particularly felt with the implementation of the KYC or Know Your Customer regulations and the interest of the SEC or Securities and Exchange Commission vis-à-vis cryptocurrencies and exchange platforms specializing in these. virtual currencies. In addition, users of decentralized exchanges are steadily increasing in number. This manifests itself in the launch of products and services to better meet the demands of newcomers.
The capital will be deployed efficiently between traders and investors through the protocols, the objective being to optimize the liquidity provision for the AlfMM (decentralized exchange service) and the Alf (over-collateralized borrowing service), but also for non-leveraged cash. All this while providing leveraged liquidity through external protocols, themselves supported by protocols associated with Alfprotocol.
Alf Leverage 101
Alfprotocol by Solana includes a large number of modules that will work together to offer users a complete intermediary product whose role is to facilitate the provision of liquidity.
It should be noted that cash is a basic module whose role is the management of collateral. It will also track leveraged positions. Cash is the very foundation of all user interactions with the leverage protocol and covers any funds borrowed on behalf of these users. Note that the treasury module does not include the initiation or liquidation of positions. The hedging of unhealthy positions falls, in effect, to the second auction module which is itself triggered by the treasury.
Another very important set of modules should be mentioned, namely the protocol connectors which allow initiation and modification of any initiation and position modification activated by the treasury module. Thanks to these modules, the treasury is connected with users and with external liquidity pools provided that the positions are solvent and not subject to liquidations.
Note that modules for connecting to other Solana platforms will continue to be developed by Alfprotocol with the aim of integrating ever more use cases that meet user needs and requirements.
The last module corresponds to the lockbox module, the role of which is to secure guarantees and monitor the value of positions. The automatic creation of lockboxes for the leveraged positions of the users is done via a wrapper on the deposited tokens in order to incorporate them into Alfprotocol.
Alfprotocol is an extended protocol that has multiple underlying advantages as well as high leverage liquidity. It offers
decentralized market solutions for traders and investors based on the
Solana blockchain.
Alfprotocol is under development. To stay informed about the project and its progress, please visit the website and get acquainted with the white paper.
