Ethereum DeFi: Yearn Finance v2 will offer leverage with Alpha Homora

  • Second iteration of DeFi protocol on Ethereum, Yearn Finance will have a cross-strategy vault with Alpha Homora v2.
  • Alpha Homora v2 will be launched in January this year with partnerships with C.R.E.A.M. and Sushiswap.

The Yearn Finance protocol has had an unprecedented expansion on Ethereum’s DeFI. In recent months, Yearn Finance has consolidated at least 6 important partnerships with SushiSwap, Pickle, C.R.E.A.M., and others. The creator of Yearn Finance, Andre Cronje, has announced its most recent collaboration.

The launch of the second iteration of Yearn Finance will have cross-strategies with assets that can be leveraged with the protocol Alpha Homora. Cronje added that users will be able to apply these strategies in Cream v2’s Iron Bank so that the vaults of the referred protocols will operate with a leverage model. Cronje raised the following case of use of a cross strategy:

Deposit 1k DAI can deposit 1k DAI and 1k USDC into Alpha Curve or 1k DAI and 1 ETH into Alpha Sushiswap borrowed indirectly via Iron Bank.

The cross strategies in the different vaults will allow up to 90x leverage with stablecoins and 80x leverage with Ethereum (ETH). At the same time, users will be able to sell, accumulate, or compound an asset. The creator of Yearn Finance aims for higher profits in the long term while increasing liquidity in the vaults.

When the vault products are launched, users will be able to do “yield farming” with leverage for SUSHI, CRV, APLHA, and other assets. The Alpha Finance Lab team celebrated the partnership with Yearn Finance:

This is a great example of how AlphaHomoraV2 and Yearn Finance will grow together. While both the products are in similar landscape, we find an angle that helps each other grow. This is how we work with our partners, and how we think it should be in DeFi.

Alpha partners with SushiSwap and CREAM to release second iteration

In mid-October last year, Alpha Homora launched its first iteration backed by Binance. The protocol has a similar objective to that of Yearn Finance, profit optimization. The second iteration of Alpha Homora has been announced for January 2021, according to a publication by Alpha Labs.

Version 2 will have more features, a new user interface, and will have the cooperation of SushiSwao, Curve, and Balancer. Alpha Homora will offer flexible leverage, multi-asset borrowing, deleveraging and re-leveraging, and will allow its users to provide liquidity without having to introduce assets of equivalent value.

Like its first iteration, Alpha Homora has been designed to make its platform easy to use for everyone. Using a strategy is simple and requires a few steps to make a loan, borrow an asset, and add liquidity or leverage. By using the protocol’s native token, ALPHA, users will be able to gain greater rewards and unlock special features. Curve’s project lead, “Charlie”, said:

It’s been a pleasure working closely with the Alpha Finance Lab team to integrate Alpha Homora V2 with Curve. Alpha is a great project with many use cases to further improve the DeFi ecosystem. Looking forward to Alpha Homora V2 launch and more collaboration!

About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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