Capital efficiency using arbitrary curves in Solana’s ALFPROTOCOL

An innovation offered by AlphaProtocol, making full use of the bonding curve

AlphaProtocol A Solana protocol for setting up liquidity provisions and yield farming capital with and without leverage. Protocols include an unchanging-based automated market maker protocol and a money market for short-term loans for exchange activities.

The most important contributions to the Solana ecosystem are the location of liquidators in AMM pools and the method of crop cultivation.

The protocol will provide a decentralized exchange service and an overcoatralized borrowing service for its users, respectively. On the other hand, leveraged liquidity is driven by a AlphaProtocolIts modules, which interface with external protocols such as Solaris, Jet Protocol, and others to deliver leveraged products up to 200x.

Arbitrary curve

One of the recent successes of DeFi is the development of DEX which can handle the transition between different crypto resources autonomously.

Solana’s decentralized exchange protocols have a liquidity pool (LP) consisting of two or more assets bound to maintain a mathematical relationship with each other as defined by a particular function or curve. Such functions include constant-aggregate and constant-product AMM.

This type of action has the potential to reduce the liquidity pool. Changes in market value, in particular, can reduce liquidity for one or more assets, reducing the total value of LPs. We introduce the concept of dynamic curve to create AlfMM in such a way that a market price will change the mathematical link between assets using data from Oracle, ensuring that pool prices remain constant and consistent with market prices. The AlphaProtocol, Solana will implement arbitrary curves using blockchain, using liquidity and efficiently allocating. This method allocates more liquidity towards the current reference price and less towards the price extreme.

AlphaProtocol Increases capital efficiency and allows for more liquid markets by connecting with low-risk, low-effort investors who provide liquidity in loan protocols with risk-seeking, active management investors who focus on leveraged liquidity provision and yield farming locations.

AlphaProtocol Currently developing. To get more information about the project and to stay updated with the current progress of the project, please visit the website and see the white paper.

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