Within 15 hours of launching, Alpha Homora has a total value locked of > 17,600 ETH ($6M)! We have seen a significant traction and demand to borrow at leverage to yield farm UNI and INDEX.

Given this excessive demand to use Alpha Homora, we are implementing 3 important changes to be able to scale faster and offer safer leveraged yield farming for everyone!

Change 1 - Lower killFactor of DPI pool to 60% (from 75%)

  • Lower the ‘killFactor’ of DPI pool from 75% to 60% to lower the risk for lenders.
  • Meaning if your position is 100 ETH and your debt is 60 ETH, your position will be at liquidation risk.
  • If you’re reaching this state, you should close your position or refill more ETH
  • Currently, the WETH/DPI position’s highest debt ratio is at 54%
  • The frontend will now offer 1x, 1.25x, 1.5x, and 1.75x leverage. 2x leverage will be deprecated.
  • This will be effective immediately

Change 2 - Triple-slope interest rate curve

We will update interest rate model from 10% fixed borrow interest rate to follow triple-slope interest rate curve

  • At 0-50% utilization rate, borrow interest rate will be fixed at 10%
  • At 50-95% utilization rate, borrow interest rate goes up linearly to 25%
  • At 95-100% utilization rate, borrow interest rate goes up linearly to 100%
  • This will be effective at October 9th at 8am UTC

Change 3 - 75% of ALPHA for liquidity mining will be rewarded to lenders

  • Change ALPHA distribution between lenders/borrowers from 50%/50% to 75%/25%
  • 1,875,000 ALPHA (75%) will be distributed to lenders
  • 625,000 ALPHA (25%) will be distributed to borrowers
  • This will be effective once ALPHA liquidity mining starts at October 9th 12:00PM UTC
  • Users can claim ALPHA reward only at the end of the liquidity mining period (i.e. November 8th 12:00PM UTC) (same as previously announced in the blog post)