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Highlights
- Alpaca Finance (ALPACA) is a lending protocol that allows leveraged yield farming.
- Users of Alpaca can earn safe and stable yields, and borrowers are offered loans requiring lower than average collateral for leveraged yield farming positions.
- Alpaca’s price has seen a steady recovery since 1 July (US$0.56), breaching the one-dollar mark and standing at US$1.34 on 19 August.
- Last week, the Binance Smart Chain announced it would list Alpaca Finance, resulting in an almost instantaneous price hike.
As decentralised finance (DeFi) becomes more mainstream, one of the leaders of leveraged yield farming is doing its best to attract institutional investors.
The leader in question is Alpaca Finance, and it’s made significant headway since its launch in April 2020.
As a matter of fact, since its launch, Alpaca has attracted US$1.5 billion in total value.
Source: © Melpomenem | Megapixl.com
So, what is Alpaca Finance?
Alpaca Finance (ALPACA) is a lending protocol that exists on the Binance Smart Chain and allows leveraged yield farming.
Users of Alpaca can earn safe and stable yields, and borrowers are offered loans requiring lower than average collateral for leveraged yield farming positions. This vastly multiplies their farming principles as well as their resulting profits.
Alpaca was always intended to be a product built by the people and for the people. As such, there was no presale of their tokens, nor was there a pre-mine of Alpaca coins before their launch, identifying Alpacas as a virtuous breed.
Source: © Isselee | Megapixl.com
Alpaca’s expansion is paying off
Last week, leading crypto exchange, Binance, announced it would list Alpaca Finance, which resulted in an almost instantaneous price hike.
Immediately following the announcement, the coin soured from US$0.9471 on Wednesday, 11 August, to US$1.62 a mere six hours later.
Alpaca had previously peaked at US$3.42 on 4 May 2021 before plummeting amidst the wider crypto crash, which was spearheaded by Bitcoin.
However, Alpaca’s price had seen a steady recovery since 1 July when it was priced at US$0.56. Since then, it has cracked the one-dollar mark, and as of 19 August, Alpaca’s price stood at US$1.34.
Also adding to Alpaca’s credentials is its new head of institutional growth - Pete Woodard, based in Ontario, Canada. Woodward has clearly provided a skill for attracting inflows from cap hedge funds as well as crypto fund managers.
Alpaca’s future plans
At this moment, Alpaca’s customers can receive a return of approximately 11 per cent for providing liquidity for swaps between stablecoins USDC and Tether. In addition, they can also receive triple-digit returns for providing liquidity for more exotic digital currency pairs.
By the end of 2021, Woodward says Alpaca plans to expand its leveraged yield farming and move onto larger endeavours.
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