What is Alpha Homora V2? How To Use Alpha Homora V2 For Avalanche Users

Hi everyone,

In today’s article, we are going to have a glance at the leverage yield farming protocol- Alpha Homora V2 protocol.”What Is Alpha Homora” and “How To Use Alpha Homora V2”.

What Is Alpha Homora V2?

Homora is the first flagship product of Alpha Venture DAO’s Build and DeFi’s first leveraged yield farming system. Homora V2 is now supported on four chains: Ethereum, Fantom, Avalanche, and Optimism.

For more information, you can visit here:

What Is Homora? Everything you need to know about Homora V2

Some Notable Points On Homora V2

• Allows yield farming to be increased by utilizing leverage on the Curve, Balancer, SushiSwap, and Uniswap pools.
• Leverage a variety of assets, including ETH and stablecoins.
• Up to 9x leverage for stablecoins.
• Allows users to borrow a variety of assets, change leverage and withdraw from positions easily.
• Can’t automatically sell farm tokens to reinvest, which help develop the partner’s community.
• There is no requirement for an equal distribution of tokens to create liquidity.

How To Use Alpha Homora V2?

Prepare a wallet and connect to Homora

Users must have a wallet address in order to manage on platform. In case you have not had the wallet address yet, you can use Core Wallet and read the installation instruction in this article: How to use Core Wallet for Avalanche users?

• Step 1: Go to Homora homepage ( https://homora-v2.alphaventuredao.io/)
• Step 2: Click Connect Wallet on the top right corner

Leverage Yield Farming

Leveraged yield farming is an Alpha Venture DAO idea that allows farmers to leverage up their yield farming position by borrowing external liquidity to add to their yield farming position. As a result, customers earn greater APY than the limit specified by DEX protocols. Homora would borrow the specified assets on behalf of the users to generate a farm by using leverage. Here is step by step how to leverage yield farming:

• Step 1: Go to yield farming category and choose a pool

• Step 2: Supply liquidity

Note: You do not need to provide an equal amount of both assets in the liquidity pair to yield farm since the Homora V2 leveraged yield farming method will swap the assets automatically and optimally to get at the same value of both tokens.

• Step 3: Select the leverage and confirm

Managing Yield Farming Position

To manage open position(s), there are 4 available actions that users can perform:

• Add: Users can add extra collateral to an existing position by using the Add action. As collateral credit is expanded, this will result in a fall in the debt ratio.
• Remove: The Remove action allows customers to remove some or all of the collateral from a position while also repaying the debt.
• Harvest: Harvest action allows users to claim the yield farming reward.
• Close: Users can utilize the close action to close an entire position. By hitting the close button, Homora V2 instantly repays any remaining debt and restores the position of liquidity to users.

Lending

Lending is the activity of putting assets into a lending pool so that leveraged yield farmers can borrow these underlying assets to do leveraged yield farming. Many assets can be lent by lenders. Here is step by step how to lend on Homora:

• Step 1: Go to lend category and choose a pool you want

• Step 2: Deposit and confirm

Note: After the deposit, you will receive IbToken which is proof a user has lent an asset on Homora V2.

In order to withdraw the asset, enter the number of ibTokens that you want to withdraw. You will then get your initial supply plus a loan charge.

Frequently Asked Questions

Are the assets lent through the Lend category considered collateral?

Only the liquidity offered when starting a farming position, plus the amount borrowed, is considered collateral. On Homora V2, those two sections serve as collateral.

What are the risks for leveraged yield farmers/liquidity providers?

Like regular yield farming, users are exposed to impermanent loss risk. However, since this is leverage farming, you are taking on leverage, and your positions also have liquidation risk.

Avaxholic’s Opinions

The Alpha Homora V2 is a highly useful product with an easy-to-use UI. Moreover, Alpha Homora V2 is a significant advancement for Alpha Finance Lab, and with the capacity to read and deliver revolutionary goods that the market needs, Avaxholic believes the project will continue to build groundbreaking and user-friendly solutions. with potential customers.

Furthermore, Homora V2 and Iron Bank contracts are deeply connected and interoperated, which has never been done before in DeFi. This is the first time a contract (Homora V2) has borrowed from a lending protocol (Iron Bank) without collateral. Homora V2 will borrow money from Iron Bank and provide it to consumers as leverage. As a result, Cream users will profit from greater lending interest rates. Iron Bank, on the other hand, lends its lending assets.

Conclusion

Finally, hope this article has explained and guided you to understand how to distinguish as well as the purpose of using the Homora.

All information on the article is for reference only, this is not investment advice. Hopefully, the information that Avaxholic has gathered in the article will be useful to you.

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