What is Alpaca Finance (ALPACA)?

Alpaca Finance or ALPACA (ALPACA/USDT – Trade it here) is the largest loan protocol built on the BNB Chain offering leveraged yield farming. It gives borrowers undercollateralized loans for leveraged yield farming positions, greatly doubling their farming principals and consequent profits, while assisting lenders in generating safe and consistent yields.

Alpaca serves as a facilitator for the whole DeFi ecosystem, amplifying the liquidity layer of integrated exchanges and enhancing their capital efficiency by bringing together LP borrowers and lenders. Alpaca has established itself as a cornerstone of DeFi thanks to this enabling feature, assisting in globalizing access to finance for everyone. In this article, we will talk about everything you need to know about Alpaca Finance, plus an instruction on how to buy ALPACA tokens.

Alcapa Finance (ALPACA) Logo
Alpaca Finance (ALPACA) Logo

Key Products of Alpaca Finance

Depending on individual risk tolerance and expected return, Alpaca Finance offers a wide selection of solutions for our users to engage in the decentralized financial (DeFi) ecosystem. Please see below for more detail:

  • Lending & Staking
    • You may securely make significant returns with Alpaca Finance by doing something as easy as holding your preferred coins. Because Alpaca’s technology provides borrowers with exceptionally high capital efficiency and enables them to open undercollateralized loans for yield farming, high APYs may be sustained. As a result, compared to other protocols, the utilization rates and lending interest rates are consistently 2x or more.
  • Leveraged Yield Farming
    • Leveraging, often known as borrowing money to expand your position X, increases your yields. Yes, it costs money to use borrowed money; just like with any lending platform, you must pay interest. However, the capital efficiency of leveraged yield farming—the capacity to borrow more money than you put up as collateral is where it truly excels.
  • Automated Vaults
    • Market-Neutral Strategy. A leveraged yield farming approach that is pseudo-delta-neutral, allowing you to yield farm high APY pairs while reducing risk by hedging away market exposure. By farming long and short positions simultaneously and rebalancing them to maintain neutral exposure. The Automated Vault avoids the majority of market risk.
    • Savings Vault Strategy. A 1xLong approach earns larger APYs than lending or staking the main cryptocurrency asset (such as BTC, ETH) since the underlying capital is used to produce yield in high-leverage yield farming positions with no possibility of liquidation. In order to eliminate liquidation risk and maintain 1xLong exposure, the Automated Vault accomplishes this by farming long and short positions simultaneously and rebalancing them.


Tokenomics of ALPACA

Fewer than 9% of the tokens vesting to the team over a two-year period, and 87% of the total supply allocated to the protocol’s users. ALPACA will be made public throughout the course of these two years with a declining emissions schedule. There will be 188 million ALPACA in total. There was a bonus rewards period for the first two weeks to incentivize early adopters.

Block Rewards

See above for block rewards timetable. It allows for the plotting of the circulating supply profile of ALPACA. The schedule is likewise monthly, and it advances periods at the beginning of the month as opposed to the middle.

How to buy ALPACA token?

You can buy ALPACA on MEXC following the steps:

  1. Log in to your MEXC account and click [Trade]. Click on [Spot].
  2. Search “ALPACA” using the search bar to see the available trading pairs. Take ALPACA/USDT as an example.
  3. Scroll down and go to the [Spot] box. Enter the amount of ALPACA you want to buy. You can choose from opening a Limit order, a Market order, or a Stop-limit order. Take Market order as an example. Click [Buy ALPACA] to confirm your order. You will find the purchased ALPACA in your Spot Wallet.

Why did the team build Alpaca Finance?

According to Alpaca’s whitepaper, yield farming on Ethereum has been a popular strategy for companies looking to increase their liquidity and attract new users. But now, the process’s escalating expenses have proven unaffordable for the vast majority of people. Because the gas costs are so outrageously expensive, Ethereum has actually turned into a game that’s not for main street!

As a result of this exponential growth in popularity, we found a gap in the applications offered on BNB Chain when compared to those on other chains like Ethereum. One of the biggest lacking parts, namely, was an on-chain leverage protocol. Alpaca Finance was established as a result, with the goal of enhancing the BNB Chain community through leveraged yield farming.

Recent Price & Performance

ALPACA reached the highest price (ATH) of 4.3685 USDT on May 3, 2021. The lowest price since the date of ATH was 0.1510 USDT on August 2, 2022.

Would you like to know more about crypto market?

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