Alfprotocol is created to cater to traders with different appetites for risk aversion.
In essence, it provides leveraged and non-leveraged products that would suit both new and experienced traders in a decentralized ecosystem that is powered by Solana, a robust blockchain suitable to handle the core requirements of a decentralized finance platform.
Solana has proven itself to be a viable go-to blockchain compared to Ethereum and other L1 solutions that have many shortcomings when tested with substantial user traffic.
Unleveraged Liquidity Pools
Solana’s Alfprotocol offers two main packaged products for the unleveraged pools in the form of:
- AlfMM – an on-chain autonomous market maker (AMM) decentralized exchange (DEX) service capable of reallocating unused liquidity to the leverage protocol. AlfMM will utilize AMM side order execution to achieve a bidirectional integration between AMM and the Treasury. The AMM acts as a source for the order flow and breaks down operations to acquire the best price option between the AMM and Serum, which gives it a DEX aggregator attribute.
- AAlf – Allotment Alf is a money market solution that utilizes single-asset pools for liquidity providers (LPs) and overcollateralized debt positions for borrowers. Pools are handled separately, with each pool’s asset acting as a base for computing pool utilization and interest rates.
The true purpose of these two products is to provide a platform for risk-averse investors to provide liquidity and trade, all while indirectly providing liquidity for the leverage protocol.
Leveraged Liquidity Pools
Alfprotocol’s leverage feature is a system that enables traders to enter