Stella
Credit · Leveraged Yield · ALPHA
Stella (formerly Alpha Homora) offers leveraged yield strategies with a pay-as-you-earn borrowing model: borrowers pay 0% interest and instead share a portion of realized profit with lenders.
Pay-as-you-earn leveraged strategies (ex-Alpha Homora).
ALPHA price
$0.0006
-8.1% 24h
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Research
Components, facts, FAQ, timeline, and tokenomics in one place
Main components (3)
Stella Strategy
The leverage side of the protocol. Users ("leveragoors") open leveraged positions on supported DeFi strategies, initially Uniswap V3 concentrated-liquidity pools (e.g. ETH/USDC.e, ETH/USDT, ETH/ARB, WBTC/ETH), borrowing liquidity from Stella Lend at 0% borrowing interest to size up their positions and yields.
Stella Lend
The lending side. Capital providers deposit assets into lending pools and earn 'real yield' generated by leveragoors' strategy activity rather than a fixed interest curve. Because returns derive from strategy profits, there is no traditional APY cap.
Pay-As-You-Earn (PAYE) fee model
Stella's core mechanism replacing borrowing-interest accrual. Leveragoors pay 0% cost to borrow for the whole leverage duration; only when a position closes with positive net yield is a portion of that profit deducted as the fee to lenders ('no gain, no pay'), aligning incentives between borrowers and lenders.
Differentiator
0% borrow APR — lenders are compensated from strategy profit share rather than interest, aligning incentives between borrowers and lenders.
Organizational structure
Units & roles
- Core development team / builder
Alpha Venture DAO (formerly Alpha Finance Lab)
The team behind Stella. Founded in 2020 as Alpha Finance Lab, later Alpha Venture DAO, it pioneered leveraged DeFi with Alpha Homora before rebranding its leverage product to Stella in 2023. Co-founded by Tascha Punyaneramitdee.
Investment rounds
| Date | Round | Amount | Investors | Link |
|---|---|---|---|---|
| 2020-10-09 | Binance Launchpad public sale (IEO) | ~$2M | Binance Launchpad (public) | Source |
Similarity to traditional finance products
How Stella maps onto established TradFi structures, and where it diverges.
| TradFi product | Similarity to Stella | Key differences |
|---|---|---|
| Prime brokerage / margin lending | Stella intermediates between capital providers (Stella Lend) and traders who want leverage (Stella Strategy), much as a prime broker lends against and finances leveraged positions for clients. | There is no fixed financing/borrow rate; instead of accruing margin interest, Stella charges nothing up front and takes a share of realized profit only (Pay-As-You-Earn). It is non-custodial, on-chain, and liquidations are automated by smart contracts rather than a broker's risk desk. |
Data sources
- Stella - The Leveraged Strategies Protocol With 0% Cost to Borrow (Medium)
- Stella is Now LIVE on Arbitrum (Medium)
- Stella audit reports (GitHub)
- Cointelegraph - Alpha Homora loses $37M following Iron Bank exploit
- DL News - DeFi partners clash over $32m Iron Bank bad debt
- Announcing Alpha Finance Lab Investors (Alpha blog)
- ICO Analytics - Alpha Venture DAO token sale