A newcomer to decentralized finance (DeFi) turns heads after skyrocketing 1,350% in just a few weeks.
Alpha Finance Lab (ALPHA) rose from a low of $ 0.02 on Nov. 3 to a high of $ 0.29 just three weeks later, amid exponential spikes in trading volume. The current price is loud CoinGecko.
The decentralized credit protocol is supported by The Spartan Group and Multicoin Capital. The core product is a decentralized, pool-based credit protocol that enables users to earn interest by providing supported assets. The interest paid by the borrowers is given equally to the lenders.
Jason Choi, Head of Research at The Spartan Group, is advertise the developers of the project and their early advances in the extremely risky and volatile DeFi market.
“Alpha Finance Lab is a team of young and motivated DeFi programmers and operators who focus on shipping synergistic products. In my opinion, these are the direction of many DeFi protocols leading to the rise of DeFi super apps.
Alpha first hit the market with a simple product: a way for people to capitalize on their DeFi returns. With Alpha Homora, users can use 3x for farm assets such as SUSHI and UNI.
While Alpha leverages DeFi’s compositional ability (e.g. using Uniswap Protocol and SushiSwap, which are now integrated with Aave), it has chosen to vertically integrate products internally. This enables faster execution and later easy implementation of the value acquisition.
If this is successful, I can see that Alpha is home to a number of products, all of which incur fees for ALPHA owners. Enriching early adopters and users can be a great way to create network effects. “
With the native governance token ALPHA, holders can wager their coins and earn part of the network fees. The tokens can also be used for liquidity mining and governance voting.
The platform works across multiple chains, including Ethereum and Binance Smart Chain, and supports multiple DeFi assets, including a new one partnership with the open source DeFi protocol Aave.
Featured image: Shutterstock / AleksandrMorrisovich
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