Alpaca Finance
lending protocol enables leveraged yield farming
undercollateralised loans to multiply yields & improve capital efficiency
Lending interests
lenders lend assets & receive ibTokens, an interest-bearing token
ibTokens are used to keep track of the funds users have deposited
ibTokens also accumulates interest through their exchange rate
Leveraged Yield Farming
multiply deposited assets to get mutiply yield rewards
lenders - deposit their single tokens within lending pools to earn yields farmers - borrow tokens from lending pools to yield farm with leverage
higher utilisation & rewards for both lenders & farmers with undercollateralised lending
as borrower/farmers' funds are managed by the protocol itself, the funds are always ready to repay by the protocol, put lenders at 0 risk
can do long/short position, market-neutral hedged strategies by borrowing 1 asset with another
How it works
users
deposit assets to the pool, either one or both tokens for LP pool
select leverage ratio from 1x to 6x
protocols
help you borrow same assets by paying borrowing fees
convert all assets to a 50:50 proportion LP token
stake the leveraged LP token, sell rewards for LP & reinvest
Automated Vaults
Market-Neutral Strategy
yield farm volatile pairs while minimising risk by hedging out market exposure
How it works
for example, doing a 3x leverage BNB-USDT position means 1x deposited USDT + borrow 0.5x USDT & 1.5x long position on BNB
due to price movement, the exposure goes above/below the threshold
position is rebalance to maintain exposure back to the range
no liquidation is configured for this strategy
Saving Vault Strategy
balance the relative sizes of the long and short positions such that your aggregate exposure on the crypto asset remains at 1x long
How it works
for example, doing a 3x leverage of 2 BNB means borrowing 4 BNB for a total 6 BNB position, forming a 3 BNB : 3 BNB worth USDT pair
it remains 2 BNB exposure but with 3x yield
no liquidation is configured for this strategy
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