Announcing Automated Vault Strategy Community Program

Dear alpacas,

We senior alpacas know there are many GeniusPacas living amongst us in the Herd. In fact, many of you have provided us with valuable feedback which we’ve used to improve the protocol and we’re grateful for.

That’s why today, we’re excited to announce a new program that’ll allow you to put your financial knowledge to good use, and will also benefit you and the rest of the Herd; introducing the AV Strategy Community Program!

📑Program details

As you might know, we senior alpacas have developed two strategies so far for Automated Vaults: Market Neutral and Savings. Still, we would like to expand the number of strategy types in our platform.

While our internal team is working on several ideas in the pipeline, instead of just a small group of people coming up with ideas, this program aims to crowdsource other potentially profitable leveraged yield farming strategies that can be codified and turned into Automated Vault Strategies! So, if you have great yield farming ideas or have profitably executed an uncommon strategy in the past, here is your chance to share it with the Herd, and earn profit sharing if it’s something we can use!

Submission process

You may send your strategy ideas to submission@alpacafinance.org and we will get in touch with you to further discuss the strategies.

What should be included in your submission

While we do not have a set format on what needs to be submitted for consideration, below are some items we recommend you include as they will greatly help us evaluate the feasibility of your strategy:

• Brief explanation of your strategy
• Economic/mathematical rationale behind your strategy
• Code/pseudo-code/spreadsheet calculation explaining how the strategy would work
• Backtest results including key performance metrics such as APR%, drawdown, Sharpe Ratio, etc.
• Limitations of the strategy (e.g. max capacity, which assets it will work on, necessary market conditions, etc.)

Evaluation criteria

We’ll evaluate your proposed strategies based on the following dimensions:

• Risks/Security: various risks associated with the strategy such as liquidation, etc.
• Economic Feasibility: how profitable the strategy is, how robust it is accross market conditions, as well as how much TVL the strategy can support.
• Development Effort: effort required to develop and maintain the strategy.

Profit sharing for strategy creator

To reward our creators, successful strategies will get revenue sharing from the vault. Specifically, creators will receive 0.5% management fee of all AV instances using the strategy. So, you stand to profit substantially if your strategy proves successful and attracts a lot TVL. Meanwhile, all tasks of operations, maintenance, and promotions of the strategy will be handled by the Alpaca Finance team.

It’s time to get creative and put on your profit hats. Think about what kind of not obvious strategies could be automated and bring profits to the Herd! We’re looking forward to hearing your great ideas!