Alpha Finance Lab (Alpha Venture DAO after rebranding, Stella after next rebranding) – a laboratory specialized in research and innovation in the decentralized financial space (DeFi). The main goal is to create products that solve current problems in this space and help users maximize profitability through decentralized cross-chain operations that eliminate borders. Initially, users will be able to take advantage of Alpha Lending, an algorithmic interest rate protocol that runs on the Binance Smart Chain. Alpha Lending supports cross-chain assets.
ALFA is the main token in the Alpha result envelope. It is used to Staking, liquidity rewards, protocol governance, and security. ALPHA was simultaneously launched on Binance Launchpad and Launchpool – you can participate in a classic token sale or Farming staking BNB, BUSD and BAND coins on Launchpool.
Criptomais experts analyzed the Stella (ALPHA) project, considered what advantages it is ready to offer in its direction, what are the main differences from competitors and where to buy and store the token.
.@AlphaFinanceLab is the first project to have a double release in #Binance!
Launch pad:
🔸 #BNB balance recording starts on 09/30/2020 at 00:00 (UTC).
Launchpool:
🔸 Use $BNB, $BUSD or @BandProtocol $BAND farming $ALFA tokens on 2020-09-30 at 00:00 (UTC).https://t.co/OlkOeCvaEC pic.twitter.com/VDysvpJxrD
– Binance (@binance) September 29, 2020
Briefly about the main thing
- The Stella XYZ project (formerly Alpha Finance Lab) is a decentralized platform designed to create and manage investment portfolios on the blockchain.
- Use automated strategies DeFi investment and tokenized assets to simplify the process.
- Alpha Token is the native token of the Stella XYZ platform, which is used to participate in project management and receive rewards.
- The ALPHA token complies with the ERC-20 standard on the Ethereum blockchain and can be stored by owners in wallets Metamask and so on. Traded on major cryptocurrency exchanges. There is also a version of the token on the BNB Smart Chain blockchain.
general information
| Designation | Financial Laboratory Beginning |
|---|---|
| Clock | ALFA |
| Token Type | BEP-20 |
| Blockchain | Binance Smart Chain |
| Total emissions | 1.000.000.000 ALFA |
| Official website | https://alphafinance.io/ |
| Blog | https://blog.alphafinance.io/ |
| White paper | https://github.com/AlphaFinanceLab/alpha-lending-smart-contract/blob/master/documents/Alpha%20Lending%20Whitepaper.pdf |
| https://twitter.com/alphafinancelab | |
| Exchanges | Binance |
Alpha Finance Lab (ALPHA) Fee Chart
ALPHA/USDT Rate Chart at Binance cryptocurrency exchange:
Alpha Finance Protocol Architecture
The Alpha Lending platform includes the following main components:
- Credit set. The main contract of the protocol, which with all its states ensures the interaction of users with the credit pool (deposit, loan, repayment, withdrawal of funds, liquidation).
- Credit pool configurator. Responsible for the features of the lending pool and BEP-20 token pools. The settings mainly involve calculating interest rates.
- alTokens. The creation and burning of alTokens is controlled by a specific contract. alToken represents the user's credit position or the share of the deposited amount in the total liquidity of a given asset.
- Price Oracle. BandChain Oracle to request the last determined price of an asset from the BandChain protocol.
Basic principles
The user invests in one of the pools supported by the Alpha Finance protocol. After that, the cryptocurrency is added to a single liquidity pool. This is all the liquidity available for a given asset to borrowers and lenders. It grows over time as deposits are made and interest is generated by borrowers.
In exchange for the deposited assets (e.g. BNB), the user receives alTokens (e.g. alBNB). This is a tokenized representation of a user's credit standing. Over time, the alToken can claim more underlying assets than was initially deposited. Liquidity increases due to the interest charged to borrowers. The amount of alTokens each user receives is calculated individually based on the deposit amount, the total amount of alTokens, and the total liquidity.
To take out a loan, a user must first pledge their assets (from among those held for the purpose) as collateral. In doing so, they also receive alTokens, indicating their share of liquidity in the protocol. Notably, even though the tokens are used as collateral, they continue to accrue interest as other participants borrow the underlying asset from the asset pool and pay interest on the loans.
A participant can only withdraw funds if there is sufficient total liquidity available to do so and if his/her account position (collateral/loan ratio) remains at the desired level after that. alTokens are burned when withdrawing the underlying asset.
There is a settlement mechanism that guarantees the security of deposits from liquidity providers. If the protocol finds that the credit position is in bad condition (the collateral does not cover a sufficient portion of the borrowed funds), it can liquidate the position by selling the collateral. This situation can also arise due to the volatility of market assets.
Interest rate dynamics
Interest rates for borrowers and lenders are calculated using a proprietary formula based on the utilization rate. It looks like this:
Utilization Ratio = Total Loans / Total Liquidity
Given that the utilization rate reflects the borrowing demand of an asset, the higher it is, the better the rental rate. The rate is individual for each asset and is continually updated.
5 to 10% of the interest rate on loans is allocated to the general reserve, constituting a type of insurance fund.
The deposit rate depends on the lending rate and is calculated by the formula:
Deposit Interest Rate = Loan Interest Rate * Utilization Rate
Alpha Finance Lab Token (ALPHA) and its receipt
ALPHA is a primary utility token that will be distributed as a reward to users of Alpha Finance Lab products for providing liquidity or securing the protocol, as well as for participating in governance votes.
Alpha Finance Lab (ALPHA) will be launched simultaneously on Binance Launchpad e Launchpool:
- The token sale will take place in the form of a raffle from September 30 to October 8, 2020, taking into account users' BNB balances.
- Staking BNB, BUSD and BAND on Launchpool for 30 days starting September 30, 2020.
We are very excited to announce that Alpha Finance Lab will be the next project to be launched $ALFA tokens in both @Binance Launchpad e Launobzobzchpool! #Binance #DeFi https://t.co/k2raLpGy6C
TL;DR 👇
– Alpha Finance Lab (@AlphaFinanceLab) September 29, 2020
Token Distribution
Advantages and disadvantages
Frequently asked questions
Conclusion
Alpha Finance Lab plans to remove a number of restrictions that are present in the DeFi sphere today. The improvement of DeFi products can only interact on the Ethereum ecosystem, while other blockchain platforms are also growing at a rapid pace. To avoid the scalability problem in the first place, developers are starting to develop other decentralized finance chains. This will benefit everyone, including users.