Alpha Finance Lab’s first product is the platform called Alpha Lending. Those who wish to participate as loaners can deposit their coins into the pool which collects coins from other loaners as well. After the deposit has been made, the loaners will then receive the alTokens related to the deposited assets, such as alBNB or alETH, as the proof of deposit.
For borrowers, firstly, collateral must be made by depositing coins into the platform. Each coin has its own Loan-To-Value (LTV), for example, if a borrower deposits BNB which has the LTV of 75%, the borrower will be able to borrow up to 75% of their deposited assets. After the borrower has returned the borrowed coins along with interests, those interests will be split up and paid to the loaner, calculated by the amount of their deposit.
In addition, Alpha Finance Lab also provides a platform called Alpha Homora, the first yield farming with leverage platform as well as the plan to release the Alpha Homora V2 which has the ability to borrow from other smart contracts within 2021.
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