Alpha Homora—Ease of Use, Fees, Wallets, and More
Published June 6, 2022.
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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.
Starting as a stockbroker in 2015, Alpaca Finance has risen to be one of the biggest players in the decentralized finance (DeFi) space. As of June 2022, it offers one of the highest returns for yield farms and staking, so it is no surprise that millions of users in the DeFi space flock to it. When it was created, the platform started offering CFDs on US stocks and ETFs and offered one of the most extensive APIs for data research. Over the years, Alpaca Finance has evolved and has become one of the biggest DeFi projects, even creating its own token—ALPACA. It offers all of the features of modern DeFi, including yield farming, staking, lending, and borrowing on a blockchain. To learn more about the details of Alpaca Finance, continue reading. ProsProvides amazing DeFi features Offers access to incredibly detailed charting tools An overall safe and legit platformCommunity-owned and stands as one of the biggest players in DeFiConsCustomer support needs improvement Lacks the same variety of assets as its competitors How Alpaca Finance Works Since Alpaca Finance is a part of the DeFi space, it should be no surprise that its platform is placed on the blockchain. Specifically, Alpaca uses the BSC (Binance Smart Chain), widely regarded as one of Ethereum’s largest competitors. The platform’s token (ALPACA) works on a proof-of-stake algorithm, which is one of the main reasons sending and receiving money is so cheap. ALPACA is used for governance, DeFi features (like borrowing, lending, and leveraging), and an overall utility function on its blockchain. For every ALPACA coin you hold, you’ll get one vote in the network, meaning that you can participate in the big governance decisions. Like many DeFi projects, this blockchain is entirely governed and owned by the community. Obtaining Alpaca Finance Obtaining ALPACA coins is relatively easy. To start, you need to have a wallet on the BSC network. Then, all you need is to sign up at a centralized or decentralized exchange and buy the amount of ALPACA that you’d like. There are many places where you can buy ALPACA, though we would highly recommend researching for the most cost-effective one. We recommend sticking to the big platforms that have proven to be safe and cost-effective, like Binance, Gate IO, and KuCoin. Alpaca Finance Farming Options Alpaca Finance offers many features to those who want to participate in the network and earn money from DeFi, with farming and lending being the biggest ones. Let’s go over them briefly. Lending Lending is one of the safest ways to earn interest at Alpaca Finance. When lending at Alpaca Finance, you’ll deposit the crypto in question, give it to the platform, and the amount will then be given to a borrower. Then, the borrower will have to pay back the loan with interest. The loan will be repaid in full thanks to smart contracts, so you don’t have to worry about the borrower defaulting. Yield Farming Yield farming is a higher-risk approach than lending, though it offers significantly better returns. Due to the way Alpaca works as a DeFi platform, you can put two coins together in a farm and then farm them by providing liquidity. Let’s say that you stake ETH and USDT. You'll receive a reward whenever a user comes to swap ETH for USDT from the pool (or vice-versa). Alpaca Finance also allows you to leverage your yield farming position, which is a big plus. Liquidating A liquidator is someone who provides the financial liquidity of the staking pool in question. Since ALPACA’s network is a proof-of-stake blockchain, liquidating automatically translates to liquidity farming, which rewards you with ALPACA—the same coin that you can later use to vote and participate in the governing process. Why Is It a Good Idea to Invest in Alpaca Finance? As of June 2022, Alpaca Finance is a big participant in DeFi and is one of the most profitable DeFi platforms. For this reason, many experienced investors in the DeFi space believe that it has great potential. When buying ALPACA, you’ll have a chance to participate in the governing process of the coin and become a contributor to the DeFi space. So, yes, it’s a good idea to invest in ALPACA.
Aragon is a unique Decentralized Autonomous Organization (DAO) project with a mission of championing community governance models. The beauty of blockchain technology is that it facilitates the development of multi-layered worlds. Though the name seems like a misspelling of Aragorn, the famous Lord of the Rings character, Aragon DAO draws its name from an autonomous district in Spain that once experienced a stateless form of governance for almost six years in the 1930s. The DAO aims to reintroduce this organized and functional community governance via blockchain. Aragon considers itself the mother of all DAOs—like what Bitcoin is to cryptocurrency. Although it's a DAO, it provides comprehensive templates and support for entrepreneurs to create DAO projects. In this regard, Aave and Decentraland DAO are built on Aragon. This review aims to address some of the commonly asked questions about Aragon, such as: What is Aragon?Is Aragon DAO free?How can you create your DAO with Aragon?How does Aragon make money? Read on to learn more. ProsAragon smart contracts are easy to read and understandThe Aragon protocol prevents impermanent lossAnonymityUser-friendly development tools, like templates and appsConsNot a common household name Aragon Fees and Pricing The growth of DAO communities has overwhelmed Ethereum capacity, making DAO functioning and voting ridiculously costly. Aragon DAO is not a free DAO creation tool. It will cost you 0.2 ETH, approximately $360 at the current market prices, and an average transaction cost of 30gwei to create a DAO on Aragon through the Ethereum blockchain. However, Aragon partnered with the Polygon network in 2021 to enable almost zero gas fees for DAO development, functioning, and voting on its protocol. Additionally, the partnership aims to provide faster transactions and a frictionless user experience. Aragon developers will also enjoy the composability of Polygon's growing ecosystem, which consists of popular DeFi projects like Sushi and Slingshot. Aragon's integration with Polygon offers almost a 5,000x discount on the cost of creating a DAO—from more than $500 on Ethereum to nearly $0.1 on Polygon. This is undeniably a game-changing partnership for DAO creators and users. Polygon and Aragon share a mutual vision of a freely accessible, borderless, and decentralized world. The Polygon network is trusted by many blockchain projects and boasts a vast amount of traction, particularly in the DeFi landscape. For instance, Polygon has three times more SushiSwap users than Ethereum. Create Your Own DAO With Aragon Follow these simple steps to create a DAO with Aragon: On the Aragon dApp, choose a QuickNode Rinkeby Node in your Web3 wallet, assuming you own at least 0.2 ETH in your wallet.Press the "Connect Account" tab, select your preferred wallet, and confirm the connection request sent to your wallet. Choose "Ethereum Testnet" Rinkeby.Press the "Create Organization" button.Choose a template for your entity, press the "Use this Template" tab, and insert your company name.Set your preferred support percentage, minimum approval percentage, and vote duration. Enter your token name and symbol. Specify your token holders and issue them with tokens—ensure the information you have entered is correct before clicking the "Launch your Organization" button. A window will show up on your Web3 wallet for transaction confirmation—approve the two transactions to create your DAO. After confirming the transactions, press the "Get Started" tab to create your first proposal query and initiate the voting process. Press "Voting" on the left side of the window, then "New Vote" to generate a new proposal query and open it for voting. When the proposal is live, community members can agree or disagree with it during the period you set earlier. That's it! ANT Tokens and How Aragon Works Aragon works by combing multiple techniques and features to achieve its goals. Every DAO comes pre-loaded with the primary organization components. Developers can create business systems like finance, token sales, and voting mechanisms. Aragon DAO has three tokens: ANTANJARA ANT is an Ethereum-based currency that acts as the native currency of Aragon. Aragon users need it for governance voting. ANT tokens entered the crypto market with a bang. Aragon DAO's Initial Coin Offering (ICO) fundraised $24 million within 15 minutes of launch. The ICO took place in May 2017, and the funds raised helped steer the company to stardom. You can buy ANT tokens on popular exchanges like Binance, KuCoin, WazirX, etc. ANJ is also an Ethereum-based token used for rewarding juries of the Aragon Court. In addition, you can stake the ANJ tokens and generate yield in the Aragon protocol. DeFi staking protocols are becoming more and more popular as they offer steadier returns than crypto trading. These protocols also do not require users to surrender asset ownership. The ARA token is used in the Aragon Chain, a side chain that acts as a foundation in the Aragon DAO. The prices of Aragon tokens are subject to regular changes caused by the volatility of the crypto market. The market values of Aragon tokens are influenced by multiple elements such as the total supply, technical upgrades and updates (like the Aragon V2 launch in 2020), developments, integrations (like the Aragon-Polygon Integration of 2021), and network users. Aragon token prices are also influenced by the broader economy, collective trends, regulations, and Bitcoin's momentum. ANT's intrinsic value is driven by its applications, technology, and technical capacity. Is Aragon a Realistically Viable System for the Future? Aragon DAO offers developers and entrepreneurs a frictionless and easy way to start DAOs. It works as a website creator by relying on pre-defined modules, which can be tailored to align with a business's specific needs. This way, Aragon offers valuable templates and dApps that allow users to exploit the power of blockchain without necessarily assembling an internal team. As the native currency for Aragon DAO, ANT will continue to rise in value with Aragon's network development. So far, we can confidently say Aragon is a realistically viable project for the future since its approach to decentralized governance adoption continues to be highly effective. Aragon strives to further integrate blockchain adoption through its modular tactic to standard business applications. Notably, the platform has experienced significant success since its inception. It has over $900 million in value held across 15,000 DAOs. The organization is wholly decentralized through a governance system, enabling community management of its core functions and code.