Solana-based Alfprotocol Provides Decentralized Capital for Investors and Traders
- A Solana-based platform, Alfprotocol is born.
- Alfprotocol is created to maximize the provision of liquidity with leverage and without.
A Solana-based platform, Alfprotocol is born to maximize the provision of liquidity with leverage and without. Alfprotocol is in fact a collection of protocols that provide decentralized capital for investors and traders.
With the goal to maximize the provision of liquidity with leverage and without, the protocol will provide unleveraged services in the form of AlfMM (a decentralized exchange service) and AAlf — an overcollateralized borrowing service.
In addition, Alfprotocol handles the leveraged liquidity through one of its modules that interface with external protocols like Solaris, Jet Protocol, and more to offer leveraged products up to 200x.
The Alfprotocol team chose the Solana blockchain over Ethereum due to its robust characteristics. And also the transaction volume per second, which significantly reduces transaction time.
Driving deeper, the fast reaction time of Solana will allow Alfprotocol to safely handle position liquidation just in time to securely cover the assets of the liquidity provider with his given interest.
Note that Solana’s lightning-fast latency is reportedly 27.5 times faster than Ethereum’s. As a result, the team behind Alfprotocol states that this creates a safer protocol for investors and the system, which will depend on timely liquidation events, if they happen, especially for instances with higher leverage.
Not to mention that Alfprotocol’s potential lies in its diversity and flexibility to satisfy traders and investors in a decentralized environment, with the security and protection that the Solana ecosystem offers. Currently, Alfprotocol is in development so for more info about the project, please visit the website and check out the whitepaper.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.
Continue reading on CoinQuora