The leveraged yield farming protocol looks to put multiple missteps in the past with a successful relaunch.

After a rocky first quarter, decentralized finance (DeFi) platform Alpha Homora announced the relaunch of its v2 leveraged yield farming program today — and so far both traders and users are celebrating as both total value locked (TVL) and ALPHA token prices soar. 

The version 2 of the platform, which allows for leverage up to 7x on popular yield farming positions on protocols such as Sushi, Curve, and Balancer, notably had to sunshinecrypto.com/news/alpha-homora-loses-37-million-following-iron-bank-exploit”>shut down to new positions after a devastating hack in February. The protocol suffered $37 million in losses, which counts among the most devastating exploits in DeFi history.

However, the relaunch so far has gone swimmingly by multiple metrics. The ALPHA token — which underwent a revamped tokeneconomic design during the downtime — is up 11.1% to $2.28 on the day, and TVL has increased by nearly $100 million since the relaunch to a total of $675 million.

It now remains to be seen how long the protocol will remain stable. In addition to the February exploit, the platform was tied to sunshinecrypto.com/news/rari-capital-falls-victim-to-11-million-exploit”>Rari Capital’s $11 million loss earlier this week, though that particular exploit was due to no fault on Alpha Finance Lab’s part. 

The relaunched v2 also came with a new set of audits, but ultimately the greatest test of a DeFi protocol is time — the longer it’s survived scrutiny from would-be exploiters, the more users can trust its longevity.

Some observers are additionally off-put by Alpha’s unusual model, which has little precedent in Tradfi. However Leo Cheng of C.R.E.A.M. Finance, whose Iron Bank protocol-to-protocol lending platform enables v2’s leveraged yield farming, sunshinecrypto.com/news/c-r-e-a-m-launches-iron-bank-flash-loans-eyes-cross-chain-capital-efficiency”>argued in an interview with Cointelegraph that if flash loans can be a key cog in DeFi’s capital efficiency, leveraged lending is a logical next step.

By nature, says Cheng, a smart contract “doesn’t quite care, and it doesn’t quite see the borders with the smart contract projects” with regards to where funds are coming from. As long as a transaction will end with the various protocols involved in the green, the transaction will go through.

Alpha Finance Labs did not respond to multiple requests for comment.