What makes Alpha3 Capital unique?
“Normal is not something to aspire to, it’s something to get away from.”
— Jodie Foster
How Alpha3 Capital stands out
We’ve been talking about the matrix behind Alpha3 Capital, but we think it’s time to elaborate on what sets Alpha3 Capital apart from the competition, hereunder existing farming as a service (FaaS), nodes as a service (NaaS) and active investing as a service (Active IaaS) projects. This will be a bit long, so make sure to make a cup of coffee or tea and enjoy the read; we’ll be covering each section in detail — Happy reading #Alpharions & newcomers.
Optimized FaaS (Farming as a Service)
Yield farming is a profitable strategy, but also a hard one to master. Not only do you have to fully understand the inner structure of the farming protocols to (effectively) profit from them, a vast amount of time and resources is also required to constantly screen the market for the best opportunities across chains. This complexity constitutes a barrier-to-entry, that simply put, scares off most retail investors. You can learn more about yield farming in our post on the topic here.
Investing in Alpha3 Capital means being a step ahead. We find the best, most profitable farms on blockchains and layer 2 solutions with the highest growth rates and lowest fees. Our approach is dynamic with a medium to long-term time horizon. We further balance investments in low, medium and high-risk farms to maximize profits while also mitigating downside risk. In plain terms, we do all the heavy lifting, including a security assessment of the smart contracts, which brings us to the next Alpha3 Capital differentiator.
Decentralized finance as a whole has grown enormously over the last 18 months, giving millions of people access to innovative financial tools. With such rapid innovation, security is of the utmost importance. However, the permissionless nature of blockchain also has its downsides, as a number of bad actors increasingly create projects on the blockchain with the sole purpose of “rug-pulling” the community. Rugpulls come in many shapes and sizes, but always end in the same fashion; being the value going to 0 in front of your nose.
Some say that you are not a real blockchain investor before getting rug-pulled at least a few times, but Alpha3 Capital wants to change this perception. Auditing in simple terms, can be summarized as a comprehensive assessment of the functions present in the Solidity code that constitutes a token or protocol (set of smart contracts that work together) to identify vulnerabilities. Whereas the Certiks of the space focus on recommending ways to fix them, we (mainly) use the audit in our investment assessments. However project owners can, if they apply for funding from the Treasury, get a copy of the AlphaAudit (that includes recommendations on how to fix potential vulnerabilities) to verify the safety of the project externally.
And although nobody can guarantee the safety of a project, we can guarantee that we will vigorously check for red flags, known exploits, non-transparent setups and a number of other shady practices and do everything we can to maximize safety. In contrast to the average retail investor, we are able to verify potential risks and avoid projects that are exposed to Liquidity Pool thefts, BotDrains, Smoke-routed reflections or anything else that could put the investment in danger.
Some more advantages derived from our security-focused approach include:
- More winners! In addition to weighting potential investments by their liquidity pool, product-to-market fit, team size and more (we’ve described our process here) we add a layer of safety, which brings down risk.
- The ability to invest in more projects; with higher funds than our competitors since we don’t need to be scared of bad investments and buybacks due to rugpulls or fraudulent behaviour from the project we make Treasury allocations into.
Active IaaS (Investing as a Service)
So, we’ve finally reached the last part of this Medium post and it’s time to round up!
When it comes to the chains we invest in, we are mostly agnostic, but for the investments itself, we mainly focus on DeFi projects, utility tokens and decentralised platforms. We pick investments based on metrics such as security, as described in the section above, in addition to pair liquidity and pool variation, team size, long-term growth potential, product to market fit to name a few (more details in our previous post).
Learning from experiences and repeating successful patterns goes without saying, but we don’t just invest and sit back. A core part of the Alpha3 concept is active participation (to maximise ROI) and sharing upcoming allocations with $ATC holders so they can get in before the Treasury if desired.
Active participation: AlphaDevs
Projects that are backed by Alpha3 Capital will have access to remote solidity workers with at least 3+ years of experience (which, if you are not aware, is really hard to find) as well as access to project managers and, in the future, a marketing team. All thanks to a collaboration that is confirmed but yet to be announced. We also want to offer access to skilled marketing professionals with experience with crypto-marketing. Please send a recommendation if you know someone we should talk to. Email: email@example.com
Our tax system is all about rewarding holders while building up treasury, marketing and development speed. This is why we will invest in improving our MarketScreeners (scripts that scout for the best new projects across chains. The long-term vision for these scripts is to expand them into a series of screeners, as well as trading bots— if and when we can do it profitably.
Oh, and every ATC holder will also have access to a personalised dashboard (which will be out in beta THIS WEEK) and the ability to buy AlphaNodes within the dApp as early as next month. Our nodes will have some of the highest fixed APYs in the industry and the details will be announced in the coming weeks, so be sure to stay tuned!
Let’s stay in touch ❤️