Binance Smart Chain welcomes another DeFi staple: Alpha Finance.
Alpha Finance Announces Binance Move
Alpha Finance will launch its Alpha Homora V1 product on Binance Smart Chain, the team announced today.
In a post titled “Alpha Homora Embraces Multi-Chain Future,” Alpha Finance is hoping to establish a place at the “forefront” of a “multi-chain ecosystem” and that Alpha Finance is intended to be a blockchain agnostic protocol. The project currently runs on Ethereum, which has suffered from well-documented gas issues for at least a year.
Alpha Finance is a relatively new protocol, but it’s quickly found a place at the heart of the Ethereum ecosystem. It allows DeFi users to take out leveraged yield farming positions. Currently, the protocol contains around $777.5 million in total value locked, according to DeFi Pulse. It will continue to run on Ethereum.
The Binance Smart Chain launch will let users take leveraged yield farming positions on PancakeSwap, the chain’s most popular exchange.
According to CoinGecko and Binance-owned CoinMarketCap, PancakeSwap registered more volume than the majority of Ethereum’s leading protocols in the last 24 hours. CoinGecko lists its daily volume as $754,162,246, behind only MDEX and Uniswap.
Alpha Finance will launch on Binance Smart Chain “in the coming weeks,” and the team says it will continue to evaluate opportunities on other chains and Layer 2 solutions. The posts concluded by mentioning the tokenomics for the ALPHA token, expected to be announced imminently.
“ALPHA token holders will play a pivotal role and benefit from this high growth,” the post said.
Binance Smart Chain vs. Ethereum
Alpha Finance isn’t the first product to announce a move to Binance Smart Chain in what’s been a heated few weeks between the Binance-owned project and its main competitor, Ethereum.
1inch Exchange, a popular decentralized exchange aggregator built on Ethereum, announced a move to the chain just last week.
Additionally, various clone projects have started to appear on the chain. The cult NFT projects CryptoPunks and EulerBeats, both of which run on Ethereum, have seen strikingly similar derivatives appear on Binance Smart Chain in recent weeks, leading some to criticize an apparent lack of originality. EulerBeats said of the “MusicalBeats” project it inspired: This is a copypasta SCAM. DO NOT BUY.”
The Ethereum and Binance Smart Chain communities have clashed on numerous occasions. When Binance’s BNB coin jumped to the third rank on the cryptocurrency leader board by market cap, debates about Binance Smart Chain’s degree of centralization raged on Crypto Twitter. Among the biggest critics of the project were Ethereum devotees.
The key proponent for Binance Smart Chain, meanwhile, was Binance’s founder, Changpeng Zhao. During the discussions, he talked about Ethereum, referencing the so-called “ETH killers” hoping to grab some of the network’s market share. He explained why he thought that Ethereum’s scaling problem could ultimately be its downfall in a tweetstorm.
“ETH is overwhelmingly successful,” he said, “But its success (not other coins) may also be its own killer.”
Disclosure: At the time of writing, the author of this feature owned ETH and ALPHA. They also had exposure to UNI in a cryptocurrency index.
