Alpha Homora—Ease of Use, Fees, Wallets, and More
Published June 6, 2022.
Our team independently researches and recommends the best products and services. We publish unbiased reviews and are not influenced by compensation we receive through affiliate partnerships.
Alpha Homora is the first product that Alpha Venture DAO (formerly Alpha Finance Lab) ever released. As a platform, it is a pioneer in DeFi, and it practically helped define what leveraged yield farming is and how it works.
Yield farming is a process in which crypto farmers provide liquidity to decentralized exchanges. In return, they get rewarded with a part of the fees that the users pay at the platform providing the pools.
What makes Alpha Homora special is that it allows users to leverage their yield farming position up to 2.5x. It also provides yield farmers with plenty of options that they can set according to their own preferences.
In simple terms, Alpha Homora gives crypto farmers the opportunity to maximize their earnings from liquidity mining. However, do keep in mind that while the product allows you to increase your profit, it also increases the risks, as is the case when working with leverage.
- An innovative product that provides a new approach to yield farming
- Beneficial to both yield farmers and the entire DeFi system
- Gives users the opportunity to earn more without relying on intermediaries
- Audited by Peckshield
- Includes users in the governance process by providing tokens
- Introduces higher risks of liquidation
- It is not free of vulnerabilities
Alpha Homora Fees
When comparing Alpha Homora with other DeFi platforms, its fees are on the low end of the spectrum. Alpha Homora charges a borrow interest rate of 10% for the vast majority of yield farms, 8% of which is given back to the lenders. The remaining 2% is the platform's fees, so you can say that Alpha Homora charges 2% for all transactions.
However, there are many ways you can go about mitigating these fees. For example, you can earn additional interest through an interest-bearing position. A user can deposit their ETH and get rewarded with tradeable ibETH tokens, which will continually earn interest.
What Makes Alpha Homora Unique?
The way that Alpha Homora's platform is designed allows users to leverage their liquidity mining exposure. This has never been seen before in the DeFi space (especially in yield farming), as crypto farmers never had the chance to improve their positions. For this reason, Alpha Homora is the first product of its kind.
However, this is not the only thing that Alpha Homora offers. The platform also supports ETH lending and has various unique features that are worth checking out. The fact that Alpha Homora allows its users to earn according to their preferences is what makes it so appealing.
Liquidators and Bounty Hunters
At Alpha Homora, there are special users called liquidators and bounty hunters with unique features over the regular user. When the position of a user falls below the liquidation ratio of the platform they are using, liquidators can liquidate their position and get 5% of it as commission. Bounty Hunters can sell all of the tokens they farmed at Alpha Homora for ETH and then reinvest the collected ETH in the pool, earning 3% of the total reward in the process.
If these numbers and reward rates sound appealing, you might want to check Alpha Homora out.
Yield Farming Options of Alpha Homora
Crypto farmers can start yield farming at Alpha Homora immediately after linking their wallets with the platform. There are many pools at Alpha Homora, but the most popular ones include:
- WETH / WBTC (Uniswap)
- WETH / USDT (Uniswap)
- WETH / USDC (Uniswap)
- WETH / DAI (Uniswap)
- WETH / DPI (IndexCoop)
One thing that is important to note about the yield farming on Alpha Homora is the way that the farmed ALPHA token is reinvested. The people behind the platform explain that reinvesting the token every day will passively yield a higher potential for profits. Also, keep in mind that the list of pools mentioned above might change, so a new pool might be added when you register on the platform.
Why You Should Invest in Alpha Homora
The introduction of Alpha Homora to the DeFi industry is a revolutionary and game-changing move. This does not only apply to yield farmers; the ability to leverage liquidity positions will impact the entire DeFi ecosystem.
While leverage yield farming is the main reason Alpha Homora has risen in popularity, it offers a few other interesting options for advanced users to explore, like its interest-bearing Ethereum accounts.
When you add its special users (i.e., bounty hunters and liquidators) and their unique features to the mix, there are plenty of reasons you should consider investing in Alpha Homora.