What is the Thai native token ALPHA and what Lending Platform does it offer?
An abundance of investors may be familiar with the ALPHA token, once of the many listed on the Bitkub trading platform.
However, this piece will take you into a deep dive into the inner workings of ALPHA for your well-informed investment decisions.
What is ALPHA?
Alpha Finance Lab (ALPHA) is a Decentralized Finance (DeFi) platform, agile in automatically analyzing and selecting the most suitable or profitable investments with the least risk factors involved.
Alpha Finance Lab (ALPHA) is led by Project Leader, Tascha Punyaneramitdee, an experienced figure in the Thai financial industry with a background of being a strategist for Band Protocol, another Thai coin project.
Alpha is also led by Nipun Pitimanaaree, the lead engineer and blockchain researcher. Having graduated from the Massachusetts Institute of Technology (MIT) and a gold medal from the International Mathematical Olympiad 4 years straight, Nipun is an experienced individual behind the current success of Alpha Finance Lab.
Alpha Finance Lab functions in a cross-chain manner amongst more than one blockchain network, wherein, in this case, involves the Ethereum and Binance Smart Chain (BSC) networks.
Additionally, Alpha also offers the Alpha Homora platform to allow users to receive revenue through liquidity provision in the form of yield farming through leveraged fund borrows to provide liquidity.
Every transaction regarding borrowing is transferred to ETH and the profit/cost is also calculated as ETH, while a 5-15% fee is included in the transaction as well.
Alpha Finance Lab launched the ALPHA token, an ERC-20 governance token developed on the Ethereum blockchain network that sustainably drives the platform’s development and is utilized as revenue and fees. On the same premise, ALPHA is also used to unlock levels for users to receive higher leverage.
Alpha’s products are DeFi-aimed, with Alpha Lending being the company’s platform to enable crypto lending services, wherein lenders can deposit their funds in a pool to receive alTokens in relevance to the deposited tokens/coins.
An example would be depositing BNB and receiving alBNB in return. The alToken is a BEP-20 standard on the Binance Smart Chain network.
In practical terms, before borrowing, users would be required to provide collateral. Each accepted digital asset would be indicated with a specific and varying Loan-to-Value ratio (LTV). For instance, BNB’s LTV can be 75%, meaning they can borrow up to 75% of the collateralized BNB and in often cases, users would be required to provide overcollateralization.
Moreover, Alpha also launched the Alpha Homora product, the first yield farming platform with leverage that provides investors with ALPHA as returns and as of 2021, Alpha Finance Lab announced Alpha Homora V2, a similar platform, but operates its lending services through borrowing funds from other smart contracts.