Capital efficiency using arbitrary curves on the Alfprotocol of Solana
Share this article
Alfprotocol is a Solana protocol for capital deployment of liquidity provision and yield farming, with and without leverage. The protocol includes the implementation of an automated invariant-based market maker protocol and a money market for short-term loans for foreign exchange activities.
The most important contributions of Alfprotocol are the exploitation of the positions of the liquidity providers in the AMM pools and the yield farming procedures.
The protocol will provide its users AlfMM and AAlf, a decentralized exchange service and an oversized borrowing service, respectively. On the other hand, leveraged liquidity is managed by one of the Alfprotocol, which interfaces with external protocols such as Solaris, Jet Protocol and others to provide products optimized up to 200x.
One of DeFi’s most recent breakthroughs is the development of DEX which can autonomously handle conversions between different crypto assets.
Solana’s decentralized exchange protocols contain a liquidity pool (LP) comprising two or more assets linked to maintain a mathematical relationship with each other at all times, as defined by a specific function or curve. These functions include constant sum and constant product AMMs.
Such actions have the potential to decrease the liquidity pool. Changes in market prices, in particular, may result in reduced liquidity for one or more of the assets, decreasing the total value of the LP. The protocol introduces the concept of dynamic curves to construct the AlfMM in a way that would change the mathematical link between assets using information from a market price oracle, ensuring that the pool price remains constant and the same as the price. of the market. The Alfprotocol, using the Solana blockchain, will implement arbitrary curves using liquidity and allocating it efficiently. This method allocates more liquidity towards the current benchmark price and less towards extreme prices.
At the moment Alfprotocol is at the beginning of the development process. The project first seeks to find 3 main investors and is dedicated to raising additional funds, building the community and developing the project.
The goal is to have a fully functional protocol with priority features within the next 6 months.
Alfprotocol joined Alexander Bokhenek, co-founder of byzantine.solutions, as a project advisor, in addition to having established a research and development partnership with pixelplex.io
Alfprotocol increases capital efficiency and enables more liquid markets by connecting low-risk, low-effort investors who provide liquidity to lending protocols with risk-seeking and actively managed investors who focus on providing leveraged cash and yield farm positions.
Alfprotocol is currently in development. To find more information about the project and stay up to date with the current progress of the project, please visit the website and consult the white paper.
“Decentralized Balance”: Is Solana late for the party?
When it comes to launching apps, most developers choose to go where the crowds are densest. Ethereum (ETH) and EOS have a total of 2,800 live dApps, not because they have …
MDEX: Neglected decentralized exchange that pays you for trading
According to statistics from DeBank and dapp.com, one of the best performing decentralized exchanges by TVL and trading volume this year is MDEX, an AMM-based DEX operating through the Huobi Eco-chain (HECO), Binance Smart Chain …
After a successful launch, Solana DEX Raydium could integrate SushiSwap
SushiSwap on Solana? Thanks to Raydium, this could happen soon. SushiSwap proposed integration Raydium, a new automated market maker (AMM) built on the Solana blockchain, could integrate SushiSwap. A proposal…