AlfProtocol Airdrop Review: Leveraged Liquidity Provision Dapp

About AlfProtocol Airdrop

AlfProtocol Airdrop is a protocol for capital deployment on Solana for the purposes of liquidity provision and yield farming, both with and without margin of up to 200x. The protocol introduces its own versions of an invariant-based Automated Market Maker protocol for exchange operations and a money market for short-term loans.

AlfProtocol and Secretum are jointly giving away a total of 250,000 ALF + 2,000 SER to 50 lucky giveaway participants. Sign up for the giveaway and complete simple social tasks to earn entries. Also earn more entries for each referral. A total of 50 participants will be randomly selected to win 5,000 ALF + 40 SER each.

Step-by-Step Guide:

1. Visit the AlfProtocol X Secretum giveaway page.
2. Submit your details and sign up.
3. Now complete the simple tasks to earn entries.
4. Also earn more entries for each referral.
5. A total of 50 participants will be randomly selected to win 5,000 ALF + 40 SER each.

Constant-Product AMMs

An automated market maker (in context of DeFi) is a smart contract -based solution implementing a set of liquidity pools and an invariant-preserving swap operation between them. Whenever a user wants to make a trade, she brings one of the assets to the AMM, and the AMM calculates the quote using a simple formula so that if the trade is made, the invariant is preserved. Since pool sizes and parameter constants are the only state that the AMM needs to keep, its potential throughput equals precisely that of the underlying layer, with no resources wasted

Evan Luthra

Evan is Forbes 30 under 30 winner, at 27 years old he has an already impressive resume and career history.

Over the past five years, Evan has built and invested in over 300 companies across several verticals.

Evan is also a well known influencer with millions of followers across various Social Media platforms and have been featured on multiple TV shows and press sites.

Evan is an accredited Angel investor and invests in a variety of digital projects and businesses.

Luthra is also a featured speaker at several universities around the globe, having taken centre stage at the United Nations, Google, Nielsen, Delhi University, Washington State University, and more.

Evan believes in in stepping out of the comfort zone and exploring the power of conceptualization, innovation and execution.

There are four sources of yield in Alf:

Interest rate paid by the borrowers who need short-term access to liquidity (this notion also includes arbitrageurs and other users of the flash loan functionality).

Leveraged protocol profit fee on auto-compounded yield rewards

Trading fees from AlfMM, the internal AMM DEX solution.

And token incentives nominated in the platform token (ALF), paid to incentivize liquidity provision in certain pools.Join Private IDO Pre-sale

Alf, The Interstellar Liquidity Protocol

Decentralized trading and management of digital assets are two rapidly evolving fields that strive to become the bedrock of the new financial world infrastructure. Introducing decentralization is hard on many levels6 , but also promises immense benefits for the world. A decentralized infrastructure is much more resilient, egalitarian, and transparent, and its corruptibility is limited since the power of any node is naturally finite.

That’s just the tip of the iceberg. Recent history of the field demonstrates rapid advancements in distributed systems, mechanism design, mathematics (notably, zeroknowledge proofs), product innovation, and models of cooperation (decentralized autonomous organizations). The innovation continues and keeps accelerating.

Tokenomics

vALF loyalty tiers and rewards

Users that stake a large amount of vALF are eligible to special tier bonuses:

Token Allocation

ALF is a fungible SPL token used by Alf protocol. The initial supply is 10,000,000,000 ALF tokens that will be distributed at launch. Tokens are allocated and will be vested as follows: ALF token is the centerpiece of the protocol incentive structure and value extraction mechanism. It has  number of functions:

1. Staking in the DAO module to decide on:
   • DAO Treasury utilization (funding development, incentive programs, grants, buyback & burn events);
   • Module onboarding (enabling leveraged capital deployment into new protocols);
   • Parameter adjustment (fees, leverage, maintenance margin);
2. Yield farming rewards for:
   • Incentivized pools in ALF lending market
   • Alf leverage Protocol users
   • Incentives for prospective lender protocols;
   • Partnership farming programs;
   • Alf convertible note buyers

Arbitrary Curve Markets

While they generalize well and are unsophisticated, capital inefficiency (as described in the previous section) is always a factor. An alternative approach for increasing capital efficiency, notably pioneered and implemented by Curve, lies with usage of curves that allocate more liquidity towards the current reference price and less towards the price extremes.

Lending & Borrowing

The second protocol in Alf is a money markets solution: Allotment Alf (AAlf). It utilizes tokenized single-asset liquidity pools for lenders (liquidity providers) and overcollateralized debt positions for borrowers. Each asset supported by Alf has a corresponding liquidity pool in AAlf, available for LPs and borrowers.