Capital efficiency using arbitrary curves on Solana’s ALFPROTOCOL

The innovation provided by Alfprotocol makes full use of the bonding curve

protocol It is a Solana agreement for the provision of liquidity and capital deployment for yield agriculture, with and without leverage. The agreement includes the implementation of an invariant-based automatic market maker agreement and a currency market for short-term loans for exchange activities.

The most important contribution of the Solana ecosystem is to leverage the position of liquidity providers in the AMM pool and yield agricultural programs.

The agreement will provide its users with AlfMM and AAlf, decentralized exchange services, and over-collateralized lending services.On the other hand, leveraged liquidity is managed by one of them protocolThese modules are connected with external protocols (such as Solaris, Jet protocol and other protocols) to provide up to 200 times leveraged products.

Arbitrary curve

One of DeFi’s latest breakthroughs is the development of DEX, which can independently manage the conversion between different encrypted assets.

Solana’s decentralized transaction protocol contains a liquidity pool (LP), which contains two or more assets, which must always maintain a mathematical relationship between each other, defined by a specific function or curve. Such functions include constant sum and constant product AMM.

Such actions may reduce the liquidity pool. In particular, market price changes will reduce the liquidity of one or more assets, thereby reducing the total value of LPs. We introduced the concept of dynamic curve to construct AlfMM. This method will use the information from the market price oracle to change the mathematical relationship between assets and ensure that the pool price remains unchanged and the same as the market price.this protocol, Using Solana blockchain, will use liquidity to realize an arbitrary curve and distribute it efficiently. This method allocates more liquidity to the current reference price rather than to extreme prices.

protocol By linking low-risk, labor-saving investors who provide liquidity to loan agreements with risk-seeking active management investors who focus on leveraged liquidity provision and yield agricultural positions, capital efficiency is improved and a more liquid market is allowed.

protocol Currently under development.To find out more about the project and keep abreast of the current progress of the project, please visit website And view white paper.

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