Alpha Finance Lab Protocol Fees & Key Stats
We are excited to share a number of key updates for ALPHA stakers and the Alpha Wolf community!
TL;DR
- Alpha Homora V2 protocol fees have been distributed to ALPHA stakers
- ALPHA stakers earn ~15% APY (from Alpha protocol fees) by staking ALPHA tokens
- Alpha Tokenomics now clearly shows Alpha protocol fees breakdown from all the Alpha products
- Annualizing the total fees collected by all Alpha Homora product suite (v1, vBSC, v2) would mean ~$14.16m is accrued on an annual basis.
- Alpha stands strong amongst the other protocols, ranking 10th on Token Terminal based on annualised protocol revenue.
- ALPHA stakers can look forward to more value accrual from upcoming products as well as tokens and protocol fees from incubated projects on Alpha Launchpad in the future
Distributing Alpha Homora V2 Protocol Fees to ALPHA Stakers
How does Alpha Homora V2 generate protocol fees?
Alpha Homora V2 generates protocol fees by taking 20% of all borrow interest rates on the protocol. For example, if the borrow interest rate of an asset is at 10%, lenders of that asset will receive a lending interest rate of 8% and the remaining 2% is collected as protocol fees.
Alpha Homora V2 has generated over ~$841,000 in fees since its launch in mid-May 2021, which was just over a month ago. If we were to annualize this amount, Alpha Homora V2 itself would generate over ~$6.53m in fees in one year.
Fee Accrual for ALPHA Stakers
Alpha Homora V2 protocol fees have now started to be distributed to ALPHA stakers. With this additional fee accrual, ALPHA holders can stake and earn ~15% APY. This APY is derived from the protocol fees collected across the entire Alpha Homora product suite, which includes Alpha Homora V1, Alpha Homora V2 as well as Alpha Homora vBSC.
Note that the APY shown on Alpha Tokenomics is 7-day APY (APY average across 7 days), so the number may not reflect the ~15% yet.
ALPHA stakers should also note that there is 0 minting of new ALPHA tokens to reward ALPHA stakers, and the APY is purely based on the protocol fees collected. This means that stakers receive high APY for staking without increasing the circulating supply of ALPHA tokens.
Users can stake their ALPHA here.
Alpha Protocol Fees & Key Stats
Alpha Tokenomics site now shows the protocol fees breakdown by Alpha products.
Alpha Homora V1 and vBSC generate protocol fees by taking 10% of borrow interest rates, while Alpha Homora V2 takes 20%. Since the beginning of Alpha Homora V1 in October, vBSC in March and V2 in May, over ~$4.2m in protocol fees have been collected.
If we apply a 12-month run rate to the fees collected, Alpha Homora products would generate over ~$14.16m in fees on an annualised basis.
The image below shows where we stand in the market in terms of protocol revenue:
With this annualised amount, Alpha stands strong amongst the other protocols, ranking 10th on Token Terminal based on cumulative protocol revenue.
It is also worth noting that fees collected so far are only from the Alpha Homora product suite and does not include fees from upcoming Alpha products.
ALPHA stakers can look forward to more value accrual from upcoming products as well as tokens and protocol fees from incubated projects on Alpha Launchpad in the future.
ALPHA Staked
The number of ALPHA staked has been increasing steadily. At the time of writing, ~75.6m ALPHA( ~$36m) is being staked on Alpha Tokenomics, amounting to ~26.5% of the circulating supply of ALPHA.
Closing Thoughts
With the distribution of Alpha Homora V2 protocol fees to ALPHA stakers, we wanted to give the community some insight into how fees are being generated by the Alpha Homora product suite and how Alpha stands in the DeFi landscape.
As we carry on innovating and building, ALPHA stakers can continue to look forward to more value accruals such as fee accruals, Alpha Launchpad token distributions and also unlocking product specific features!
About Alpha Finance Lab
Alpha Finance Lab is a DeFi Lab and on a mission to build an ecosystem of DeFi products (the Alpha ecosystem), consisting of innovative building blocks that capture unaddressed demand in key pillars of the financial system. These building blocks will interoperate, creating the Alpha ecosystem that will be an innovative and more capital efficient way to banking in DeFi.
Alpha Homora is Alpha Finance Lab’s first product and DeFi’s first leveraged yield farming product that captures the market gap in lending, one of the key pillars of the financial system.
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