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Alpha Finance Lab, a DeFi platform, today announced the first project of its Alpha Launchpad – Beta Finance program, an unlicensed money market platform for lending, borrowing and selling cryptoassets.
Beta Finance aims to offset the volatility of crypto and ensure market stability through a short selling tool coupled with an unlicensed money market. The Alpha Finance Lab team chose Beta Finance for the incubation because they believe the platform is an essential part of the financial infrastructure to ensure market stability; an offer of products which is necessary and which is lacking in DeFi.
Alpha Launchpad + Beta Finance
In traditional finance, short selling or borrowing the asset to sell it immediately at the inflated value and buy it back at a more reasonable value; has been adopted prominently as a counter-power to compensate for market volatility by traders, financial institutions and banks. This alleviates excessive upward pressure and allows the market to operate more efficiently.
With Beta Finance, DeFi users will be able to sell any crypto asset with just one click. Beta will borrow tokens from users looking to sell short in beta money markets and perform the short position for users. On the other hand, crypto token holders can create a money market on Beta to lend and get high lending APYs in return.
This comes at a time when users cannot sell the crypto assets they wish to sell; because these assets are not supported by any money market existing in DeFi. Even if the short-circuited asset is supported by an existing money market; The beta will eliminate the need for users to interact with various DeFi protocols and pay gas fees on multiple transactions.
The pervasive price volatility of today’s market landscape creates unpredictability for investors. The precariousness of token prices that climb exponentially in a short period of time leaves many of these investors vulnerable to huge price exposure, and the Alpha team believes Beta Finance’s short-selling function will be a great fit.
“The Alpha Launchpad incubator program was set up to eventually develop the Alpha Universe; and bring more added value to ALPHA’s partners by incubating the main building blocks of DeFi, the first being Beta Finance. The support and advice provided by Alpha through Alpha Launchpad will act as a catalyst for DeFi teams to move their projects forward; whether in terms of product-market fit, technical work and even fundraising strategies. “
– The Alpha Finance Lab team
Interested DeFi teams can view the Alpha Launchpad application process here.
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