Alpaca Finance
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Alpaca Finance

Pool Announcement + Borrowing Rate Readjustment

Dear Alpacas,

It‘s been a busy week for us with the releases of improved leveraged yield farming features and our first official listing on Gate.io. Even so, we have even more for you. We know the herd is growing and that you’re always hungry for more yields and more farm varieties. So we want you to know, we senior alpacas heard you, and now, we’re very happy to announce support for 9 additional LYF farming pools!

You heard that right. That’s 9 more opportunities for you to get high yields!

The new pools we’ll be adding are:

5 BNB-paired pools

  • DOT-BNB (3x)
  • UNI-BNB (3x)
  • LINK-BNB (3x)
  • XVS-BNB (3x)
  • YFI-BNB (3x)

4 stable-BUSD pools

  • VAI-BUSD (4x)
  • USDC-BUSD (4x)
  • DAI-BUSD (4x)
  • UST-BUSD (4x)

You can read about the specific strategies for each pool here.

With more supported pools, farming TVL will spread out and there will be more leveraged rewards from PancakeSwap, which means…you guessed it — higher yields for everyone!

This is especially true for stable-BUSD pools. For example, the VAI-BUSD pool is allocated the same amount of CAKE rewards from Pancakeswap as the USDT-BUSD pool, but only has 40% of the liquidity. That means VAI-BUSD’s farming yields are 2.5x that of USDT-BUSD!

This is only the beginning though. You can expect even more pools and deposit vaults to be added over the upcoming weeks to give you even more opportunities to generate profit!

The pools will go live on Friday, April 2nd, at 1 PM GMT.

⚠️Safety notice:

While stable-pair farming has limited asset-price exposure and IL risk because both assets are like-kind assets that move together with high correlation and are pegged to the same underlying stable asset(USD), there are still potential risks such as short-term volatility and price impact from trading when entering and exiting large positions. It’s also important to note that these risks are multiplied with leverage. So please farm carefully.

We want our herd to be safe and recommend you read more about the risks involved here or our recent article discussing different ways to minimize price impact and trading fees here. Then, as long as you’re aware of how to avoid the risks, you’ll be able to farm to your heart’s, and wallet’s content.

💲Borrowing interest rate for the BUSD pool

With the Minimize Trading and Add Collateral features going live, we will also readjust the borrowing interest rate for the BUSD pool back to its original parameters. At the third slope, 90%+ utilization will return to its prior scaling range of 10–150%, which should lower utilization back to steady levels where everyone profits.

This interest rate change will go into effect after the adding collateral feature goes live, on Friday, April 2nd, at 1 PM GMT.

✅Lowered Emissions

As per the schedule, on 4/1, ALPACA emissions per block have decreased from 35 to 25. However, APYs for both lending and leveraged yield farming still remain very high because we’re adding more pools and a substantial portion of the APYs come from leveraged farming the AMM(PancakeSwap). What these lowered emissions will do though is decrease selling pressure and inflation. So, as we burn more tokens and emissions keep decreasing, with time, deflation will overcome inflation and the price of ALPACA will inevitably rise.

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