No magic, just a well-developed platform. A detailed review of Alpha Homora’s services.
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Alpha Homora is a product of the Alpha Finance Lab.
ETH lenders can earn high interest on ETH and grow crops (hold crop growing positions).
Users can participate in Alpha Homora as profitable farmers, ETH lenders, liquidators and bounty hunters.
Harvest farmers
UP TO 2.5X Leverage: users can borrow ETH with up to 2.5x leverage to farm on a Uniswap supported pool.
Auto-reinvestment: all received tokens will be automatically converted for adding to each user every 24 hours.
ADJUSTABLE POSITIONS: users can change their positions at any time by adding more ETH or withdrawing some or all of the ETH. Any action is allowed if the final position has a debt not exceeding 70% of the position value. Please note that your position is still solvent between 70% and 80% and will be liquidated as soon as 80% of the position value is reached.
Here's an example scenario for Alice's bountiful farmer: Alice has 100 ETH and wants to farm UNI on the Uniswap ETH-USDT pool where she can usually earn 30% APY. She can exchange about half of the ETH for USDT and then transfer them to the pool and earn 30% APY.
With the help of Alpha Homora, she can borrow 150 ETH from Alpha Homora Bank by paying the borrower's interest rate and together with her initial 100 ETH, she can now handle 250 ETH (2.5x leverage!).
Getting a total return of 75% APY will more than double!
Without a deposit, she can continue farming until the value of her position falls below 187.5 ETH.
NB! Alice also needs to pay interest on the loaned amount, which depends on the ETH utilization rate.
ETH creditors
Users deposit ETH into the bank, they receive a proportional amount of the ibETH token traded and brought inactivation, which represents their total ETH assets in the bank pool, similar to cToken in Compound.
EARN INTEREST: interest paid by ETH borrowers is distributed among ETH lenders in proportion to the amount of the ETH loan. Lenders' interest rate depends on the extent to which ETH is used; the higher the utilization rate, the higher the interest rate.
NB! 10% of the borrowers’ interest will go to the Bank's reserves, which can be used as an insurance fund for lenders, in case of unforeseen scenarios. In the future, the powers of the bank reserve will move to community management.
LIQUIDATION BONUS: liquidators earn 5% of the cost of closing positions at risk (debt kill factor of the position value).
An example script for Charlie the liquidator: farmers run the risk of being liquidated, especially when the price of the farm token drops significantly (relative to ETH).
Bounty
Bounty hunters can use the reinvestment function to sell all received tokens from the Alpha Homora portfolio for ETH and reinvest them in a pool of profitability, receiving 3% of the total reward in the process!
You can reinvest the received rewards for the entire Alpha Homora portfolio and receive rewards in just a few steps:
Go to the Alpha Homora home page.
Connect your wallet.
Go to the Pool Status tab and click on “Reinvest” in the desired pool.
Confirm your transaction.
Your wallet will receive a reward proportional to the total reinvested reward (3%).
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