Protocol-Owned Liquidity: How Alto Funds Its Own Growth Introduction Most DeFi lending protocols face the sam…

Protocol-Owned Liquidity: How Alto Funds Its Own Growth Introduction Most DeFi lending protocols face the same trap. Issue a native stablecoin and users exploit the cheap borrowing rate for profit elsewhere. Rely on external stables and your margins get competed away. Either way, you end up hooked on token emissions to keep liquidity alive, and when those slow, everything unravels. Terra and Olympus are cautionary tales. Alto bets on a different model where users earn options to buy ALTO at a discount but have to pay stablecoins to exercise them, turning participation into treasury capital.