#### What is Alpha Finance Lab? Alpha Finance Lab, also known as Stella, is a [protocol](https://www.coinbase.com/learn/crypto-basics/what-is-a-protocol) that aims to redefine how leveraged [DeFi](https://www.coinbase.com/learn/crypto-basics/what-is-defi) works. It is designed to drive more usage on decentralized exchanges (DEXes) and money markets, which are the fundamental building [blocks](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/block) of DeFi. Stella aims to become the go-to destination for DeFi users to access maximum [yield](https://blog.coinbase.com/around-the-block-7-understanding-yield-farming-and-the-latest-developments-in-defi-ef9f1ac910fb) potential. The protocol is made up of two parts: Stella Strategy and Stella Lend. Stella Strategy allows users to access multiple selections of leveraged strategies with 0% borrowing interest, while Stella Lend enables lenders to lend assets to the lending pools on Stella and earn real yields. The ALPHA token is the native token of Stella. #### How does Alpha Finance Lab work? Stella operates under the Pay-As-You-Earn Model (PAYE), which focuses on the yield sharing between lenders and borrowers. In Stella Strategy, borrowers can access multiple selections of leveraged strategies built on top of various DeFi protocols without paying any borrow interest. Instead, they share the yield they earn when closing the position. On the other hand, Stella Lend allows lenders to lend assets to the lending pools on Stella and earn real yields. The yields generated from Stella Strategy are shared with lenders. Stella Strategy enables users to increase their positions by borrowing funds at 0% cost, leading to higher yields from trading fees, token rewards, or price exposure. #### What are the potential use cases for Alpha Finance Lab? Stella offers a range of leveraged strategies sourced from major DeFi protocols, providing users with expanded opportunities to generate yields. Users can execute a [liquidity](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/liquidity-) providing strategy with exposure within a few clicks. By using an exposure strategy, users can gain more from asset price [volatility](https://www.coinbase.com/learn/crypto-basics/what-is-volatility) on top of trading fees. Stella also introduces the concept of LP as collateral to enable undercollateralized loans. By assigning a collateral factor to each LP, the protocol can determine how much credit is gained from collateralizing an asset. Stella also allows users to add extra collateral to help better a position's Debt Ratio. #### What is the history of Alpha Finance Lab? Alpha Finance Lab was developed by a team led by Tascha Punyaneramitdee, a former Head of Strategy at Band Protocol, Product Manager at Tencent, and Investment Banking Analyst at Jefferies. The ALPHA token was initially launched with a circulating supply of 174.1 million [tokens](https://www.coinbase.com/learn/crypto-basics/what-is-a-token) out of a total of 1 billion ALPHA. As an [ERC-20](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/what-is-erc20) token, ALPHA is backed by one of the most robust and secure [blockchain](https://www.coinbase.com/learn/crypto-basics/what-is-a-blockchain) networks in popular usage — [Ethereum](https://www.coinbase.com/learn/crypto-basics/what-is-ethereum). It is kept secure by its extensive proof-of-work ([POW](https://www.coinbase.com/learn/crypto-basics/what-is-proof-of-work-or-proof-of-stake)) [mining](https://www.coinbase.com/learn/crypto-basics/what-is-mining) network. Stella also relies on external audits to ensure its [smart contracts](https://www.coinbase.com/learn/crypto-basics/what-is-a-smart-contract) are secure.