Alpha Finance Lab DeFi platform, Today announced the first project of its Alpha Launchpad program-Beta Finance, which is a permissionless money market agreement that can lend, borrow, and short-sell crypto assets.
Beta Finance aims to offset cryptocurrency volatility and bring market stability through short selling tools and permissionless currency markets. The Alpha Finance Lab team chose Beta Finance for incubation because they believe that the platform is an important financial infrastructure to achieve market stability; a product that DeFi needs but lacks.
Alpha Launchpad + Beta Finance
In traditional finance, short-selling or borrowed assets are immediately sold at an inflated value and bought back at a more reasonable value; it has been mainly used by dealers, financial institutions and banks as a counter-force to offset market fluctuations. This reduces excessive upward pressure and enables the market to operate more efficiently.
With Beta Finance, DeFi users can short any crypto asset with the click of a button. Beta will borrow tokens from users who want to short on the Beta currency market and enter short positions for users. On the other hand, any holder of encrypted tokens can create a currency market on the Beta version to lend and get high loan APY in return.
This is when users cannot short the crypto assets they want to short; because these assets are not supported by any existing currency markets in DeFi. Even if the short-sold assets are supported by the existing currency market; the beta version will eliminate the need for users to interact with various DeFi protocols and pay gas fees for multiple transactions.
The increasing price volatility that always exists in the current crypto market structure leads to unpredictability. In the short term, the price of tokens, which is rising exponentially, is unstable, making investors vulnerable to huge price risks. Alpha believes that Beta’s short selling function will be very suitable.
“Alpha Launchpad’s incubator program aims to ultimately develop Alpha Universe; and by incubating key building blocks of DeFi (the first is Beta Finance) to bring more value to ALPHA stakeholders. Alpha’s support and guidance provided through Alpha Launchpad will Become a catalyst for the DeFi team to advance the project; whether it is product market fit, technical work, or even financing strategy.”
– Alpha Financial Lab Team
Interested DeFi teams can check the Alpha Launchpad application process Here.