In a March 23 announcement, Alpha Finance stated that ALPHA token holders will benefit from the growth of its products. These include Ethereum-based Alpha Homora, the Binance Smart Chain version of the platform, Alpha Homora v2, and AlphaX.
The DeFi leveraged lending protocol Alpha Homora launched to v2 on Feb. 1. It integrated a number of existing DeFi protocols including Curve, Balancer, Yearn Finance, SushiSwap, and Uniswap for leveraged yield farming.
The announcement stated that the new tokenomics enables ALPHA holders to stake tokens for fee-earning opportunities. This works across the whole ecosystem regardless of what blockchain it’s running on.
Tokens can be used to unlock unique features of the varying products once they are staked;
“This is one of the very first times that tokenomics is directly integrated with the usage of the core underlying protocols.”
Staking and rewards will be based on a tiered system with five levels. More tokens staked means better rewards and unlocking other privileges.
It added that its tokenomics makes value accrual not limited to fee collection from the ecosystem, but integral to the usage of the core Alpha protocols. This is because the tokens unite the ecosystem rather than just being used for liquidity or governance.
The announcement didn’t mention a launch date for the new staking incentives. However, the team added that it would reveal more “over the coming days.”
Alpha Homora allows DeFi farmers to earn leveraged yields. This currently offers higher returns over a number of existing pools and vaults on other protocols.
APLHA Price Update
The ALPHA token increased by 3.3% on the day to trade at $1.75 at the time of press. It’s up 9% since the same time last week, and 14.5% over the past month. There is a circulating supply of 250 million tokens out of a maximum of one billion. Its total market capitalization is $453 million.
It hit an all-time high of $2.90 on Feb. 5, but has retreated 37.5% since then. The total value locked on the platform is $800 million according to DeFi Pulse. It too has decline from a peak of $1.2 billion on Feb. 13.
The new staking opportunities are likely to give this DeFi token another boost in price momentum.