Leveraged Yield Farming Going Live!

Dear Alpacas,

The moment you’ve all been waiting for is here! We Senior Alpacas are very excited to announce that our leveraged yield farming will go live on Thursday, March 25th at 2.00 AM GMT. After this time, you’ll be able to open leveraged positions by going to https://app.alpacafinance.org/farm where you can enjoy multiplied yields!

This is a big step forward for the Herd and we thank everyone who has supported us on this journey. We have a lot of details to share with you in this article, but for those short on time, you can read the TL;DR.

TL;DR

• The Smart contract audit with PeckShield is completed! Any identified issues have been fixed.
• At launch, five PCS pools will be supported: CAKE-BNB (2.5x), BTCB-BNB(3x), ETH-BNB(3x), BNB-BUSD(3x), and USDT-BUSD(6x)
• Our strategy will stake LP tokens in CAKE pools on your behalf and auto-compound CAKE rewards for you to maximize your returns.
• Additionally, you’ll earn extra ALPACA rewards by having leveraged farming positions opened.

✔️Audit Completed by PeckShield

PeckShield has completed the audit of all our smart contracts. Any identified issues have been solved. PeckShield has also verified that we’ve indeed resolved the issues. The report can be found here.

As part of the LYF launch, we’ll also deploy upgraded vault contracts(also audited) to enhance the security of your funds. Lastly, over the past several weeks, supportive community members have also helped review our code, noting any areas where we could enhance our efficiency and optimize security. We thank everyone for those suggestions and we’ve polished the code where appropriate.

For the reasons above, we believe that we can now confidently say — our code is fully-secured, and we’re ready to launch the leveraged yield farming function for our community.

🌾Let’s get farming!

At 2.00 AM GMT on March 25th, the leveraged yield farming function will go live. You’ll be able to open LYF positions by going to https://app.alpacafinance.org/farm.

We’ve written a detailed step-by-step guide on how to open and close your positions. So go ahead and get familiar with it if you want to be ready to jump on those juicy yields when LYF becomes available.

At launch, we’ll support five Pancakeswap pools and plan to integrate many more in the near future.

• CAKE-BNB (2.5x)
• BTCB-BNB (3x)
• ETH-BNB (3x)
• BNB-BUSD (3x)
• USDT-BUSD (6x)

Alpaca Finance deploys strategies that work to achieve the highest possible yields for our farmers. We also want to make sure our users have the best experience when interacting with our platform. That’s why we’ve simplified the leveraged farming process by automating many things behind the scenes.

Some of our key features for enhancing usability are:

• 💰Flexible deposit options: our vault optimally converts your deposited assets and the borrowed BNB or BUSD to get an equal value-split to supply the farming liquidity pool. So for example, for the CAKE/BNB pool, you can deposit any amount of CAKE and/or BNB to start farming without having to do the conversions yourself.
• 🍰Automatic staking: our code stakes the LP tokens for you on the chosen platform(PancakeSwap, etc. ) automatically, so you can start earning rewards right away.
• 📈Continuous auto-compounding: our bot automatically sells your rewards(CAKE, etc.) every 10 minutes, converts them into the LP tokens for the pool you are farming, and compounds them onto your farming principal so you can maximize your APY.
• ⚡️Claim ALPACA rewards anytime: by opening a leveraged yield farming position, you’ll earn bonus ALPACA rewards that you can claim anytime on the stake page.

The diagram below shows our protocol’s farming strategy for the BTCB-BNB pair. Strategies for other pools are similarly executed and can be found here.

🎁Updated Rewards Allocations

With the launch of leveraged yield farming, we are updating the points allocations for ALPACA rewards as follows:

Leveraged yield farmers will earn ALPACA rewards based on the size of their borrowed assets relative to the total borrowed assets.

For example: Bobopened an LYF position on the CAKE-BNB pool. He decided to do a 2x leverage. He supplied 10 BNB and borrowed another 10 BNB for a total position size of 20 BNB. If we assume that at that time there were total loans outstanding of 2,000 BNB, Bob’s debt size would be .5% of the total loans outstanding(10/2000), so he’d be entitled to .5% of the ALPACA rewards allocation for BNB(10.5 ALPACA/block).

You’ll be able to claim your ALPACA rewards on the stake page anytime you like with just a click of the “Claim” button, the same way you’ve been doing until now. You won’t need to do any staking for this. Our contracts will keep track of all this behind the scenes. Pretty neat, right?

We thank all you Alpacas for your strong support over the past several weeks, and we couldn’t be more thrilled to offer you this service, allowing you to maximize your yields through leverage in an easy and intuitive way. This is a big step for our protocol, but rest assured — this is only the beginning. Every day, we’ll continue to work hard, delivering additional features and improvements as per our roadmap, because like cats chase laser points, Alpacas chase yields.