Leveraged yield farming is a concept originally and innovated by the team from Alpha Venture DAO. This mechanism was deployed first on Homora V1, on Ethereum in October 2020, becoming the first leveraged yield farming product in DeFi.
Homora V2 is a platform that offers high risks, and high rewards. High risks are inherently associated with the volatility of assets that are difficult to control and predict.
However, we try our best to control what we can in order to bring users a safer environment for farming. We handpick pools that offer high yields and high security
Users can begin yield farming with just one type of asset. Homora V2 has the option to supply any combination of assets, without having to have an equal amount of assets for a liquidity pool.
For existing LP providers, you can easily migrate your position to Homora V2 by supplying in the LP token. Note that the pool must already be listed on Homora V2 already.
To enable our users to take leverage on many assets without having to bootstrap liquidity for all of them ourselves, we are partnering and integrating deeply with Iron Bank or Cream V2 as a source of liquidity. This enables Homora V2 to quickly grow and scale.
Homora V2 and Iron Bank contracts are integrated and interoperated at a deep level that has never been done before in DeFi. This is the first time that a contract (Homora V2) can borrow from a lending protocol (Iron Bank) in an under-collateralized way. Homora V2 will borrow liquidity from Iron Bank and offer as leverage for our users. Thus, Cream users will also benefit from higher lending interest rates. On the other hand, the lending assets are also lent on Iron Bank.
Alpha Oracle Aggregator combines top-tier cross-chain oracle service from Band Protocol and Chainlink to make sure the price feed is accurate at all times. This also helps make sure our product can continue to run even when one oracle service is out of sync.