A Platform with and Without Leverage!

Alfprotocol is essentially a set of protocols created to provide decentralized capital between investors and traders to maximize the provision of leveraged and unleveraged liquidity.

Alfprotocol and Solana provide decentralized high leverage

The protocol will provide leveraged products in the form of AlfMM (a decentralized exchange service) and AAlf (a hyper-collateralized debt service). On the other hand, leveraged liquidity; Solaris is managed through one of Alfprotocol’s modules that communicates with external protocols such as Jet Protocol, with more expected to be added in the future to provide products with up to 200x leverage.

High leverage positions have always been an issue with other protocols that depend on Ethereum’s “Proof-of-Work” (PoW) Blockchain to empower them. Solana supports the handling of high leverage positions due to its robust features, i.e. throughput per second, which significantly reduces transaction time (response time) compared to the Ethereum network.

The fast response time of Solana’s Alfprotocol will allow the liquidity provider to safely handle position liquidation just in time to safely cover its assets with its allocated interest. Solana’s lightning speed and low latency, which is 27.5 times higher than Ethereum, creates a safer protocol for investors and the entire system. This will depend on timely liquidation events, particularly where higher leverage is used. During congestions, the Ethereum network can pose a risk to investors and traders, with transaction fees in some cases reaching up to $400 per transaction and due to the lack of timely liquidation.

Solana is the better choice when it comes to highly leveraged trades

Since the viability of highly leveraged liquidity provisions depends on only two factors, the volatility of assets and the response time of the protocol to liquidate unhealthy positions, it is imperative that blockchain features be a key factor in deciding which is the most efficient network. However, Solana processes 59,000 transactions per second (tps) compared to Ethereum’s 17 transactions per second and Cardano’s 250 transactions per second, making Solana capable of meeting today’s needs and the potential needs of future demands.

The potential of Alfprotocol lies in its diversity and flexibility to meet the needs of all traders and investors in a decentralized environment, with the security and protection offered by the Solana Blockchain. Alfprotocol is currently under development. To learn more about the project and stay up to date with the current progress of the project, please visit the website and browse the whitepaper.

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