Alpaca Finance is a lending protocol on Binance Smart Chain (BSC) that enables leveraged yield farming. The platform helps users to earn stable yields on their crypto assets and offers undercollateralized loans to borrowers for leveraged yield farming.
ALPACA is the native utility token of the platform and has the following current and future use cases:
Staking: Users can stake ALPACA tokens for interest-bearing ALPACA (ibALPACA). In addition, users may further stake their ibALPACA on the Grazing Range to earn staking rewards paid in other project tokens.
Performance fee sharing: Several mechanisms helps to distribute the platform performance fees and make ALPACA a deflationary token. The performance fees on yield farming vaults are distributed to ALPACA lending depositors, and a proportion of the lending interest goes towards a buyback and burn mechanism of the ALPACA token.
Governance: ALPACA token holders will be able to create improvement proposals and vote on platform governance issues.
Exclusive NFT access: The platform aims to integrate NFTs, and provide access to the ALPACA tokens holders and the NFT holders. This may include exclusive real-world items such as Alpaca Finance merchandise.
The protocol consists of the following major components working in conjunction:
Vault strategies: Alpaca Finance deploys vault strategies to achieve the highest possible yields for their depositors. Some features of the vault strategies include flexible deposits, automatic staking, and continuous auto-compounding.
Interest bearing tokens (ibTokens): Users may deposit assets on the platform lending pools, and receive Interest Bearing tokens (ibTokens) in return. The ibTokens helps to keep track of the user's deposits and any interest earned. The balance is proportional to the stake in the lending pool, and interest accrued at every block.
Grazing range: Users may further deposit Interest Bearing Alpaca (ibALPACA) in the grazing range to earn additional staking rewards paid in tokens from other projects.
Oracle guard: A platform mechanism to protect users from oracle exploits. Oracle guard goes into protection mode. This consists of disabling liquidations, opening and closing positions, and adding collateral; in order to protect users from trading at bad prices and taking a loss.
Alpaca Finance is a fair launch project with no pre-sale, no investors, and no pre-mine. Note that 8.7% of the distributed tokens will go towards funding the project development and team expansions.
As at August 11th 2021, the total supply of ALPACA is equal to current circulating supply of 141,603,872 (~75.3% of 188,000,000 maximum token supply).
Learn more about the token distribution here.