Rock Solid Yield Strategy Exploration Memo #1 — Alpha Homora

A brief introduction of Alpha Homora

  1. Yield farmers: the ones who borrow ETH to take leverage in yield farming. Their own assets are used as collaterals in Alpha. They take the risk of being liquidated, specifically when the farming token price drops significantly (relative to ETH).
  2. ETH lenders (what we are interested in our analysis): The ones who lend out ETH to Yield farmers and gain up to 20% APY with full collateral. They share the risk of debts accrued by underwater positions in case liquidators did not liquidate in time.
  3. Liquidators & Bounty Hunters: The ones who execute liquidation when price drops below kill ratio and earn 5% liquidation bonus.

Opportunities, challenges and risks

Our current conclusion



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The only yield management framework focused on creating Rock Solid Yield for all the users in the #DeFi space.