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How to borrow ETH with up to 2.5x leverage to yield farm? Your locked LP can still receive the income? DeFi yield farming can generate NFTs? Yield farmers, attention! This week, we are introducing 3 new DeFi projects that bring you new ways to play with yield farming.
Alpha Homora
Alpha Homora is a DeFi protocol for leveraging your position in yield farming pools. Users can participate in Alpha Homora protocol as yield farmers, ETH lenders, liquidators, or bounty hunters.
Alpha Homora has shown an amazing on-chain performance since it launched. The 7d users increased by 27.72%; 7d transactions increased by 32.96%; 7d volume exceeded $1.21B with a 56.51% increase.
(The black dot curve represents the token price.)
The ALPHA token price has a high correlation with Alpha Homora’s on-chain data, which increased by 34.7% in the past 7 days.
How to use Alpha Homora as different types of users?
Yield Farmers:
You can borrow ETH with up to 2.5x leverage to yield farm on supported Uniswap and SushiSwap pools.
The APY reward you can get contains 3 parts:
Yield farming in the liquidity pool
Trading fee rewards of the token pair
$ALPHA rewards specifically to Alpha Homora users
All the yield farmed tokens will be automatically converted to add onto users' positions every 24 hours. This makes sure all yields are reinvested to further maximize everyone's profit. Position stays solvent as long as the debt is worth less than killFactor (80% for Uniswap pools and 60% for IndexCoop pool) of the position value. You can at any time choose to adjust your positions by adding more ETH or taking some or all ETH out. Any action is acceptable as long as the result position has debt no more than 70% of position value.
The Alpha Homora V2 has launched on 1st Feb, with 4 leveraged pools available now: Curve’s 3pool (USDT, USDC, DAI), Balancer’s PERP/USDC (80/20), SushiSwap’s ETH/SUSHI (migrating from v1) and Uniswap’s ETH/UNI (migrating from v1). The highest APY is 362.11% for the Balancer pool.
ETH Lenders:
Once you deposit your ETH, you will earn 2 things.
Earn interest paid by borrowers, depending on ETH utilization rate*.
Earn ALPHA from using Alpha Homora (see ALPHA Liquidity Mining section below)
*Note: 10% of the borrower’s interest is allocated for reserves.
Liquidators:
Liquidators earn 5% of the position value for liquidating positions at risk.
Bounty Hunters:
Bounty hunters can call reinvest function to sell all yield farmed tokens in Alpha Homora portfolio for ETH, and reinvest into the yield farming pool, earning 3% of the total reward in the process.
ALPHA tokens are the core governance of Alpha Homora protocol. It mainly has 3 usages:
Utility token for all Alpha products. You can provide liquidity or stake to receive % protocol fees.
Main token to leverage Alpha products interoperability. You need to stake ALPHA in order to unlock interoperability features between Alpha Lending and Alpha Homora.
2-Level Governance: product-level and Alpha Finance-level. Product-level governance will allow ALPHA token holders to govern key metrics of specific Alpha products. Alpha Finance-level governance will be implemented in the second phase and will allow ALPHA token holders to govern how the portfolio of Alpha products interoperate.
Alpha Homora's smart contract has been reviewed by PeckShield. However, keep in mind that there are still risks using a DeFi protocol.
Freeliquid
Freeliquid is a decentralized lending platform, forked from MakerDAO, on which you can lock liquidity tokens (LP) and receive a loan up to 90% of the locked value in stablecoins.
However, your locked LP continues to function, receiving the same income from liquidity fees. Freeliquid platform is currently being the only platform to offer such an opportunity.
Freeliquid has issued 2 tokens: USDFL and FL.
The USD Freeliquid (USDFL) is an ERC-20 stablecoin that is soft pegged to 1 US dollar and backed by user-provided collaterals. It is the main currency of the protocol and serves as a medium of exchange and an efficient store of value with a stable market price. It is easy to hold as well as transfer using cryptocurrency wallets. Like many other ERC-20 tokens, it is tradeable on decentralized exchanges as well.
Freeliquid Borrow allows users to lock their crypto assets in the form of liquidity pools as collateral to borrow USDFL stablecoins. It is done by setting up Freeliquid Vaults, which are smart contracts that generate USDFL after users lock their collaterals in Freeliquid Borrow and issue a loan.
At the moment, Freeliquid Borrow supports Uniswap pools consisting of the following stablecoins: USDT, USDC, DAI, and USDN. You are able to borrow USDFL up to 90% of the collateralized asset value. The loans do not require a third-party approval and you are not bound by any date until which the repayment has to be made. Loans can be issued and covered instantly and at any time. The received funds in USDFL are in full control of users and can be traded freely. For example, this might include creating another pool on Uniswap, almost doubling the original passive income from liquidity fees.
Freeliquid Save is a savings program that earns interest for USDFL holders. Users can lock their USDFL in Freeliquid Save and receive constant payments, also in USDFL, accrued to their balance. The funding for Freeliquid Save comes from the interest charged for the loans in Freeliquid Borrow, so there is no inflation of USDFL involved. The user balance is updated constantly and can be claimed all at once for the whole past period. Similar to Freeliquid Borrow, the USDFL tokens can be locked and unlocked with no penalties.
FL token is the governance token of Freeliquid in ERC20 standard. FL holders can participate in the governance of the project through voting. The token can be easily stored and transferred to any ERC-20 wallet. During the first three months of Freeliquid, you can get rewarded by providing liquidity pools for the USDFL-FL pair. There has been no ICO or private sale of FL, instead, the governance tokens will be distributed to users that support liquidity of the native Freeliquid tokens.
Cometh
Cometh is a DeFi powered game with yield generating NFT. The first version of the game will be live on Optimistic Rollups Layer 2 (Mainnet) on February 8, 2021.
Cometh's MUST token price bulled, increased by 86.4% in the past 14 days, breaking $600.
(The black dot curve represents the token price.)
MUST price shows a close correlation with Cometh's on-chain volume. The game's volume was tracked more than $1M in the past 7 days, with a 48.05% growth.
The Cometh’s galaxy is full of asteroids composed of valuable DeFi tokens. You can explore, take control of spaceships orbiting around a giant sun to mine them. You will earn MUST tokens, the utility token issued by Cometh, when other players are using your spaceship attraction to jump from an orbit to another. Or you can swap your ETH in MUST in Uniswap.
After earning, you can stake your MUST to redeem exclusive spaceships. If you’d like to upgrade to the next level, you can earn MUST being a liquidity provider and access legendary spaceships.
Just stake your MUST tokens and farm reward points (DUST). The points are earned every day based on how many MUST you stake. You can redeem NFT Spaceship Card against DUST.
All the spaceships are tradable NFTs on Ethereum blockchain. You can smoothly buy and sell your spaceships in OpenSea, get custom stats and analytics, get a profit by trading your spaceships. And don’t forget to claim your 30% cash back for every new spaceship.
Besides these 3 DeFi, there are many other new blockchain products under 9 categories added on dapp.com every week. Get updated in this playlist: What’s New?
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