As the innovation and development of decentralized markets continue to accelerate, automated market makers (AMM) are becoming more and more popular.
In the past two years, with the introduction of “know your customer” (KYC) regulations and the “Securities and Exchange Commission” (SEC)’s implicit interest in cryptocurrencies and cryptocurrencies, the demand for alternatives to centralized exchanges has shown Exponential growth. comminicate. In addition, as the number of customers of decentralized exchanges continues to increase, more and more products and services are introduced to meet the diverse interests of new users.
protocol Solana’s blockchain will be used to expand decentralized liquidity supply and production agriculture, with a leverage ratio of up to 20 times.
These agreements will effectively handle the capital deployment between traders and investors to maximize the liquidity supply (LP) of AlfMM (a decentralized trading service) and AAlf (an excess mortgage lending service). Obtain unlevered liquidity and provide leveraged liquidity through an external agreement handled by one of the following agreements. Agreements related to Alfprotocol.
Alf Leverage 101
Solana’s Alfprotocol contains multiple modules that will work together to provide users with a complete intermediate product to promote liquidity supply.
The treasury is one of the core modules for processing collateral and tracking leveraged positions. It is the basis for all users to interact with the leverage agreement and will be responsible for any borrowed funds on behalf of the user. The financial module will not handle any position opening or liquidation; therefore, the liquidation of unhealthy positions will be handled by the second module, the auction module triggered by the Ministry of Finance.
Another set of core modules is the protocol connector, responsible for initiating and modifying positions triggered by the financial module; as long as the position remains healthy and not affected by liquidation triggers, these modules are responsible for connecting the fund library with users and external liquidity pools. Alfprotocol will continue to develop the connector module and extend it to other Solana platforms to include more use cases that meet user needs.
The last module is the lockbox module, which will protect the collateral and track the value of the position. By launching a wrapper on the deposited tokens and incorporating them into the Alf protocol, a lockbox will be automatically created for leveraged user positions.
Alfprotocol is a broad protocol with many potential advantages and high leverage liquidity, providing solutions for decentralized market traders and investors using Solana blockchain.