Alpaca Academy -Research on Increasingly Leveraged Pairs-

hiyocoro
Leverage Farming with Alpaca
7 min readMay 6, 2021

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Good morning.😊

Last time we featured Alpaca Finance.

Today, we are going to study DeFi with Alpaca master.
I’d like to share with you a story from the Alpaca Academy about how leveraged farming can be profitable even in down markets if used properly.

When you use leverage farming, depending on the pair you choose, the value of the LP may go up, but for some reason you don’t make as much profit as you expected.

In other words, if you don’t understand the characteristics of the pair, which one you owe, and which one can be profitable if it goes up, you can lose unexpectedly, so today’s note is a must.

Okay, let’s go!

How it all started

It all started with a tweet from Mr.Medaka. (Thanks!)

(2) めだかさんはTwitterを使っています 「LP絡むので通常の信用取引とは違います アルパカではCAKE/BNB x3だと自己資金1BNB 借入2BNBの計3BNBをCAKE/BNB 50:50となるがるがBNB部分は借入があるので計0.5BNBのショートとなる 要はBNB下がっても利益がでるよという話」 / Twitter

I was interested in this, so I read the full original article on Medium.

I read the full article on Medium because I was interested in it, and it was very informative, so I’ll give you a quick overview. I’ve tried to separate the…

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hiyocoro
Leverage Farming with Alpaca

DeFi is fun! I started DeFi in February 2021 and my life has changed, everyday is fun! Alpaca Book: https://www.amazon.com/dp/B09C4RDSBP