Alpha Homera Tokenomics: Unlocking Products Unique Features with Alpha Tiers

Alpha Homera has introduced new liquidity incentives in their updated tokenomics structure. Alpha Finance Labs is an ecosystem of DeFi products that will produce outstanding returns while reducing users' risks.

By
Utulu Hope
on
April 4, 2021
Category:
Project Insight

Alpha Tokenomics Explained 

Alpha tokenomics is an innovation created by the DeFi protocol to give stakers of its ALPHA tokens huge rewards. However, aside from the benefits of staking, why was it created in the first place? 

Now, here's the catch. Alpha tokenomics will be launched based on creating a positive feedback loop for ALPHA stakers. This positive feedback loop runs when stakers do the following: 

  • Stake ALPHA
  • Use Alpha products as ALPHA stakers
  • Increase the fees accrued on the Alpha Homora protocol and increase the fees proportionally distributed to ALPHA stakers

As the feedback loop runs continuously, members of the highest tiers of the Alpha ecosystem will yield more benefits. In turn, this system contributes positively to the growth of the Alpha community. 


Unique Features and Alpha Tiers

In their anticipation towards the release of the Alpha tokenomics, Alpha Finance Lab disclosed how the Alpha community would enjoy significant benefits as Alpha stakers. They will benefit from the fees generated in its ecosystem. In just six months of Alpha Homera's operation, the fees accrued amounted to $1.7 million. 

Also, Alpha Homera will be one of the first DeFi ecosystems to include a tokenomics that explains its products' entire functions. With this, Alpha stakers can enjoy the privilege of unlocking unique features of Alpha's products according to their specific tiers. Therefore, users will be categorized into five tiers based on the number of ALPHA tokens staked. This means that the higher the quantity of ALPHA staked, the higher the tier and vice versa. Let us discuss the five tiers and the benefits you may obtain depending on your staking amount. 

Alpha Woof Woof - First Alpha Tier 

  • Eligibility: Alpha stakers whose staking falls within the range of 0 - 1,000 ALPHA tokens are eligible to be in this tier. Therefore, by default, any member that joins the Alpha community is automatically a member of the Alpha Wolf pack family. 
  • Feature: No unique feature can be unlocked in this tier yet, maybe in the future. 

Alpha Wolf Pup - Second Alpha Tier 

  • Eligibility: Alpha stakers who have ALPHA tokens from 1,000 to 10,000 will become part of the Alpha Wolf Pup family. 
  • Feature: Here, Alpha Wolf Pups will have access to unlock 10% higher leverage on Alpha Homera v2 as leveraged Yield farmer and Liquidity provider. 

Alpha Wolf Warrior - Third Alpha Tier

  • Eligibility: Alpha stakers with staking power of 10,000 - 100,000 ALPHA tokens are part of the Alpha Wolf Warrior clan. 
  • Features: As Tier levels increase, the benefits also increase. That said, Alpha Wolf Warriors have much more benefits to get. Compared to the 10% leverage Alpha Wolf Pups get, Alpha Wolf Warriors receive 20% higher leverage on Alpha Homera v2 as leveraged Yield farmer and Liquidity provider. Just like the previous tier, you can also leverage a higher position than your existing leverage cap, but this time, 10% more. 

Alpha Wolf Elder - Fourth Alpha Tier

  • Eligibility: Alpha stakers with ALPHA tokens of 100,000 - 1,000,000 are eligible to be part of this clan. 
  • Features: This is a 10% upgrade on Alpha Wolf Warrior's leveraged position. This means that Alpha Wolf Elders have the benefit of a 30% leveraged position. 

Alpha Pack Leader - Fifth Alpha Tier

  • Eligibility: Anyone who has at least 1,000,000 ALPHA tokens is an Alpha Pack Leader. It is the highest tier. 
  • Features: Users in this category have access to a 40% leveraged position, equivalent to a 10% more leveraged position than the fourth tier. Also, Alpha pack leaders will have not only access to the highest leverage position but also the entire Yield farming/liquidity providing market. 

According to Alpha Finance Lab, the benefits of all five tiers are just the start to its development. In the future, Alpha tokenomics will unlock more unique features of its products. 


Alpha Homera's High Utilization and Benefit for Stakers 

On many occasions, the asset utilization rate on Alpha Homera sits at 80-90%. However, how is this of great importance to Alpha stakers? 

When utilization is high, there is more volume of borrowing activity resulting in lots of accrued fees. As stated earlier, accrued fees are distributed back to the stakers. Therefore, the higher the rate of utilization, the greater the accrued fees for Alpha stakers. When there is more borrowing activity, there is a high lending interest rate, and more lenders will come to lend on the platform. 

Yes, the yield farming borrowing aspect of Alpha Homera is not to be taken for granted, but the protocol's lending aspect is equally vital. The rate of utilization will speed up the amount of fees aggregated across Alpha products. As such, stakers will significantly benefit from this. 


Conclusion 

The launch of Alpha tokenomics will expose Alpha stakers to the products of the entire ecosystem. While every other tier is essential, the Alpha pack leader members will contribute greatly to the growth of the Alpha community. Generally, the whole pack will help develop Alpha Homera's products and unlock profitable layered leveraged opportunities on Alpha Homora v2 - which will go-live when Alpha Homora v2 relaunches.

The Alpha team will keep on creating positive feedback loops that allow stakers of the ALPHA token to unlock more unique features on Alpha products. Alpha Finance Lab aspires to shake up the DeFi market and launch more products. 

To learn more about Alpha Finance Lab, visit their media pages below

Website 

Blog 

Telegram

Discord

Twitter  

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Utulu Hope

UC Hope is a passionate fan of crypto who could weave the latest event into sparks of inspiration and information. He leaves no stone unturned to get to the core of a story. Aside from writing, he spends his hours poring over algorithms and protocols, preparing for a future career as a computer programmer.