Leveraged yield farming and liquidity provision with up to 200x leverage

Leveraged yield farming and liquidity provision with up to 200x leverage

Alf is a protocol for deploying capital on Solana for liquidity provision and yield farming purposes, both with and without margin of up to 200x. The protocol introduces its own versions of an invariant-based Automated Market Maker protocol for exchange trades and a short-term credit money market. The central contribution to the Solana ecosystem is a protocol for leveraged LP positions in AMM pools and yield farming protocols. Alf improves capital efficiency and enables more liquid markets by matching low-risk, low-effort investors providing liquidity for lending protocols with risk-oriented, active-managed investors focused on providing leveraged liquidity and yield farming positions.

Figure 1: Cross-protocol liquidity facilitation by Alf.

The focus is on the protocol for leveraged liquidity provision in AMMs and yield farming. To complement this, Alf offers two unleveraged liquidity management protocols: AlfMM (a decentralized exchange service) and AAlf (an overcollateralised borrowing service). The main purpose of both protocols is to provide entry points for traders and risk-averse investors, giving them a platform to trade and provide liquidity while curbing additional revenue from indirectly providing liquidity to the leverage protocol.

The Alf Leverage Protocol allows users to enter leveraged positions in different types of assets. The two primary uses that the Alf team initially envisage for the protocol are leveraged long/short positions and leveraged LP yield cultivation.

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