0:00 Welcome
9:27 traction numbers
11:11 Where does the name Alpha Homora come from?
13:12 How does Alpha Homora work?
16:52 Collateralization
18:46 Risk Characteristics
20:51 Version 2
23:06 Sources of Inspiration
25:03 Roadmap
27:00 Order Books
29:04 Tokenized Positions
31:10 DPI Defi Pulse Index
33:33 Shout out to Andre Cronje
35:56 The Iron Bank
38:32 Yearn vs Alpha
40:24 M&A in DeFi
44:02 Future Vision
48:40 How to get in touch with Alpha Finance Labs
What is Alpha Finance Labs?
Yeah, so that’s when I think it gets more interesting with what we’re building at alpha finance lab. So So instead of focusing on one particular area, or sector of DeFi, we’re actually going to focus on the end goal of what we’re going to achieve for the users. So we think that the end goal that we want to achieve is how pretty much maximizing the returns and minimizing the downside risks for users. And we think that, you know, that’s the ideal goal of financial products suites, right? Because no one’s gonna use the product if they cannot maximize the returns. Versus you know, if maximizing the returns and they don’t know how to hedge the risk, or there’s no way to hedge that risk, then that’s also not ideal. So when we come up with that goal, instead of a particular clear that we want to focus on, then we kind of backtrack, to see how do we get to that goal and pretty much to get to that goal, it’s pretty much that we need to do a number of alpha products to work together to achieve that goal, because it’s pretty much, you know, very hard to optimize for everything from one product. And especially on blockchain too, there are a lot of limitations on that.
So in order to get that goal, we need a number of alpha products to work together. So that’s where kind of backtracking to alpha Homora. So for alpha Homora, we’re focusing on maximizing the returns for the users and pretty much we found that, like, the lending rates on DeFi are actually pretty good. But we were actually spotting and opportunities starting from Ethereum lending, right, as there are a lot of ETH lenders, and they are actually bearing quite low lending interest rate on these. And we think that if we can find a way to engineer an innovation on the borrowing side, then we would be able to unlock a really high lending interest rate on ETH. And, you know, capture a huge demand from from ETH lenders, right?
Yeah. So that’s what came from for the first version of alpha Homora. And the way that we innovate on the borrowing side is by doing leveraged farming, so it’s the first time that leverage the farming came into the picture. And I think that, you know, received pretty well, product market fit, because there are a lot of yield farmers in the space and, and they’re, they’re still going to search for higher yields, because the yields nowadays are not as high as June last year. So they’re still gonna search for higher yields. And this is the mechanism that allows them to get that higher yields without having to do all of the steps manually. And vice versa, as the lenders would be able to get the high lending interest rate on ETH.
Because of these leveraged borrowers who are actively borrowing these ETH, to do more yield farming. So that’s pretty much know the backstory of alpha homora. And in the future, or later questions, I can also explain more of like, why we decided to build v2, what’s the differences? And then what are the other alpha products that we’re going to build, but you can see the whole picture that it’s going to work as a whole ecosystem. So alpha Homora is one of the products that we’re going to build. And at the end of the day, the whole ecosystem would achieve the goal of maximizing returns and minimize some good downside risks. So similar to the YFI ecosystem, like do you intend for the alpha to essentially unify like that.
Disclaimer
Information is provided for general educational purposes only. This presentation is not an offer to sell securities or a solicitation of offers to buy securities. Nothing contained herein constitutes investment or other advice nor is it to be relied on in making an investment decision. For more important information, please see disclaimer
