The re-launch of its v2 leveraged yield farming program today, by decentralized finance (DeFi) platform Alpha Homora, after a rocky first quarter. Also, as both total value locked (TVL) and ALPHA token prices soar, both traders and users are celebrating
After a devastating hack in Februrary, the version 2 of the platform, which allows for leverage up to 7x on popular yield farming positions on protocols such as Sushi, Curve, and Balancer, notably had to shut down to new positions. Also, counting among the devastating exploits in DeFi history, the protocol suffered $37 million in losses.
By multiple metrics, the re-launch has so far gone swimmingly by multiple metrics. During the downtime, the ALPHA token — which underwent a revamped token economic design, is up 11.1% to $2.28 on the day and TVL has increased by nearly $100 million since the relaunch to a total of $675 million
It now remains to be seen how long the protocol will remain stable. In addition to the February exploit, the platform was tied to Rari Capital’s $11 million loss earlier this week, though that particular exploit was due to no fault on Alpha Finance Lab’s part.
The relaunched v2 also came with a new set of audits, but ultimately the greatest test of a DeFi protocol is time — the longer it’s survived scrutiny from would-be exploiters, the more users can trust its longevity.
Some observers are additionally off-put by Alpha’s unusual model, which has little precedent in Tradfi. However Leo Cheng of C.R.E.A.M. Finance, whose Iron Bank protocol-to-protocol lending platform enables v2’s leveraged yield farming, argued in an interview with Cointelegraph that if flash loans can be a key cog in DeFi’s capital efficiency, leveraged lending is a logical next step.