Automated market makers (AMMs) are becoming more popular as innovation and development continues to accelerate in decentralized markets. In recent years, with the introduction of “Know Your Customer” regulations and the US Securities and Exchange Commission (SEC) interest in cryptocurrencies and crypto exchanges, the demand for alternatives to centralized exchanges has grown exponentially. Additionally, as the client numbers of decentralized exchanges continue to increase, more products and services are being introduced to meet the interests of new users. One of them is Alfprotocol.
Alfprotocol offers up to 20x leverage
Alfprotocol will use Solana’s Blockchain to expand its decentralized liquidity supply and farming with unprecedented leverage of up to 20x. While the protocols provide leveraged liquidity through external protocols handled by one of those associated with Alfprotocol; It will efficiently handle the allocation of capital between traders and investors to maximize the amount of liquidity (LP) available for AlfMM and AAlf (an over-collateralized borrowing service) for leveraged liquidity.
Introduction to alf leverage service
Solana’s Alfprotocol includes several modules that will work together to provide users with a complete intermediary product that will facilitate the provision of liquidity. It is one of the core modules that will track treasury, collateral and leveraged positions. It is the basis of all user interactions with the leverage protocol and will be responsible for funds borrowed on behalf of users. The Treasury module will not initiate or liquidate any positions; therefore, the liquidation of unhealthy positions will be the responsibility of the second module, which is the bidding module that will be triggered by the treasury.
Another group of core modules are the protocol connectors that are responsible for initializing and changing positions triggered by the treasure module. These modules are responsible for maintaining the link of the treasury with users and external liquidity pools as long as positions remain healthy and are not subject to a liquidation trigger. Alfprotocol will continue to develop and expand its connector modules to other Solana platforms to incorporate more use cases that fit users’ needs.
The last module is the lockboxes module, which will secure the collateral and track the value of the positions. For leveraged users’ positions, locked boxes will be created automatically after launching a wrapper to include deposited tokens in Alfprotocol. Alfprotocol is a comprehensive protocol with many key advantages, high leverage liquidity and provides solutions for decentralized market traders and investors using 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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