Disclosure: Delphi Ventures has invested in Alpha. Members of our team hold Alpha, Cream and Aave. Delphi has done consulting work for Aave in the past. This statement is intended to disclose any conflict of interest and should not be misconstrued as a recommendation to purchase any token. This content is for informational purposes only, and you should not make decisions based solely on it. This is not investment advice.

  • Alpha trades at a relatively cheap P/E ratio compared to its peer group. This is likely due to the market pricing in a drag on earnings from the protocol’s debt to Cream.
  • From a capital efficiency standpoint, Alpha is in a league of its own, with the amount of fees it generates per $ of TVL at $0.27. For context, the runner up for this metric is Compound at $0.05.
  • Utilization ratios and supply interest rates for long tail assets are attractive in Alpha’s “Earn” pools, likely driven by borrow demand from its leveraged yield farming product.
  • A dark horse catalyst for Alpha is the recent release of its new launchpad. This could accrue more value to token holders as they will receive a portion of cashflows from new protocols that are incubated by the Alpha Finance Lab ecosystem.

Alpha’s native token $ALPHA has suffered the worst drawdown among comparable money markets since May, despite the launch of its Alpha Homora v2 product as well as healthy revenue numbers.

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