Alfprotocol consists of several modules that will work together to provide users with a complete intermediary product that will facilitate the provision of liquidity.
Description of the Alfprotocol project
The protocol includes an implementation of the Automated Market Maker protocol, based on invariants and a money market for short-term loans for exchange activity. The most important contribution of the Solana ecosystem - the use of positions of liquidity providers in AMM pools and farming procedures.
Other features:
| 1 | Treasury is one of the main modules that will handle collateral and track leveraged positions. |
| 2 | It is the basis of all user interactions with the leverage protocol. It will be responsible for any leverage on behalf of users. |
| 3 | The Treasury module will not process the opening or liquidation of a position. Thus, the second module will be responsible for liquidating unhealthy positions, which is the auction module that will be run by the treasury. |
Another core set of modules - protocol connectors, which are responsible for initiating and modifying positions, triggered by the treasury module. These modules are responsible for connecting the treasury to users and to external liquidity pools as long as the positions remain healthy and are not subject to a liquidation trigger. Alf will continue to develop and expand connector modules to include more use cases to meet user requirements. The last module is the safe module, which will protect the collateral and track the value of positions. Lockboxes will be automatically created for leveraged user positions by initiating a shell of escrowed tokens to include them in the Alf system.
The protocol will provide its users with AlfMM and AAlf, a decentralized exchange service and an overcollateralized borrowing service, respectively. On the other hand, leveraged liquidity is managed by one of the Alfprotocol modules which interacts with external protocols such as Solaris, Jet Protocol and others to provide products with up to 200x leverage.
More about defi app
Alfprotocol improves capital efficiency and provides more liquid markets by connecting low-risk, low-effort investors who provide liquidity for credit protocols with risk-seeking, actively managed investors who focus on providing leveraged liquidity and profitable farm positions. Alfprotocol is currently under development. To find more information about the project and keep up to date with the current progress of the project, please visit the website and read the White paper. Also, the developers maintain Medium blog, where articles with news are available. The smart contract doesn’t have an audit.