Amber avatar
Coin98 Insights
Nơi chia sẻ tất cả những kiến thức Crypto từ cơ bản đến nâng cao, kinh nghiệm đầu tư Bitcoin và các hình thức đầu tư tiền điện tử khác.

What is Alpaca Finance? All about you need to know about ALPACA token

What is Alpaca Finance? What is ALPACA Token? Let's find out the outstanding features of project and detailed information about ALPACA Token!
Amber avatar
quangphan
6 min read
Published May 13 2021
Updated May 13 2024
what is alpaca finance

Binance Smart Chain (BSC) is the second biggest blockchain after Ethereum in terms of Total Value Locked (TVL). The BSC ecosystem has mostly finished its DeFi Legos, and is now ready to adopt the money flow into its applications.

At the moment, in the BSC ecosystem, the TVL in Alpaca Finance is $1.73B, only behind those of PancakeSwap and Venus. What is Alpaca Finance? What have Alpaca accomplished and how? This article will give you the answers to those questions.

What is Alpaca Finance?

Alpaca Finance is a lending protocol on Binance Smart Chain that features leveraged yield farming. Lenders can receive secure and stable yields, while borrowers can apply for undercollateralized loans to earn profits by leveraged yield farming.

To clarify, yield farming is a common model where AMM incentivizes users to provide liquidity into the protocol. In return, they can “farm” and receive the native token of the project.

Leveraged yield farming is another version of yield farming, whereas liquidity providers can borrow funds to significantly increase their profits.

advertising

The yield farming model is believed to bootstrap the protocol in two directions: The project can solidify the liquidity, at the same time benefit and attract more users by rewarding them with tokens.

What is ALPACA token?

ALPACA is the native token on the Alpaca Finance platform. ALPACA plays a crucial role in maintaining and sustaining the Alpaca ecosystem, as it is both a governance and a utility token.

How does Alpaca Finance work?

The way Alpaca Finance works is pretty simple; there are two main participants inside the ecosystem, which are lenders and borrowers, as mentioned above. You can benefit from becoming any of the two.

As a lender, your profit derives from:

Interest paid by borrowers.
Incentive rewards in ALPACA.
Incentive rewards in other tokens that partner with Alpaca Finance.

As a borrower/yield farmer, your profit derives from:

Yield farming incentive rewards.
Trading fees.
Incentive rewards in ALPACA.

There is an additional role in Alpaca, which is liquidators. Liquidators are responsible for monitoring equity collaterals and liquidating them if their prices drop below an acceptable threshold. However, liquidators in Alpaca Finance can only be bots, so I don’t list them as actual users in the ecosystem.

Alpaca improves user experience and leveraged farming efficiency by implementing several automating features:

Flexible deposit options: Users can provide liquidity using a single token and Alpaca will automatically convert it to fit the pool.
Automatic staking: Alpaca automatically stakes your LP tokens on the chosen platform.
Continuous auto-compounding: In order to maximize the APY, Alpaca automatically uses the pool’s rewards to convert them into LP tokens, therefore creating Compound interest.

Furthermore, Alpaca also develops other features such as Grazing, Stronk Vault, and NFT.

Detailed information about ALPACA token

ALPACA Price Today

Currently, you can track the price of ALPACA on Coin98 Markets.

Coin98 Markets is a website that helps users to get updates of the real-time prices, as well as view the detailed information of a Token Metric from any project. More specifically, you can access the home page or the community page of a project, or filter the coins/tokens by Market Cap, Trading Volume, etc.

alpaca price
ALPACA price is updated currently on Coin98 Markets (Updated: September 11, 2021)

ALPACA Key Metrics

Name: Alpaca Finance.
Ticker: ALPACA.
Token standard: BEP-20.
Token type: Utility, governance.
Max supply: 188,000,000 ALPACA.
Circulating Supply: 153,841,061 ALPACA.
Contract address: 0x8f0528ce5ef7b51152a59745befdd91d97091d2f.

ALPACA Token Allocation

alpaca token allocation
ALPACA Token Allocation

ALPACA Token Sale

ALPACA does not have a Token Sale. Instead, ALPACA went through a fair launch distribution process.

ALPACA Token Release Schedule

87% of the total supply will be distributed to Alpaca’s users, while 8.7% of the total supply will be distributed to the development fund. Both will be vested over a two-year period.

alpaca token release schedule
ALPACA release schedule

ALPACA Token Use Cases

Currently, ALPACA token has five main use cases:

Incentive rewards.
Buyback and burn. There are 2 sources used for buyback and burn:
5% of all liquidation fees (initiated by Alpaca’s internal bot). If the liquidation is initiated by a 3rd party bot, 4% out of the original 5% will be used.
10% (out of 19%) of the borrowing interest fees.
Governance.
Partnership rewards.
Exclusive NFT access (in the future).

How to get ALPACA Token

You can get ALPACA by providing liquidity and staking on Alpaca Finance.

How to buy ALPACA

You can buy SANTOS through:

DEXs: PancakeSwap, Babyswap,...
CEXs: Gate, Binance, Kucoin,...

You can also swap and buy ALPACA directly at the Coin98 Exchange interface at the end of this article! Coin98 Exchange is a decentralized exchange (DEX), a Multi-chain liquidity aggregator that offers users a wide variety of DeFi services (swap, stake, lend, borrow,...) through intuitive and simple interfaces.

How to store ALPACA

You can store ALPACA token on Coin98 Wallet with these steps:

Step 1: Open Coin98 Wallet & click Receive on the home screen.

Step 2: Search ALPACA Token.

Step 3: Click on the correct result, copy the wallet address and send ALPACA to this address.

store alpaca token
How to store ALPACA Token on Coin98 Wallet.

Alpaca Finance Roadmap

Q3 2021

Multi-chain expansion.
Create an SDK.
Partner with lending protocols to accept ibTOKENS as collateral.
Add more single-asset LYF pools.
Additional Audits.
Additional CEX listings.
Integrate with more DEXes.
Integrate transaction routing to external protocols for minimizing price impact when opening/closing leveraged yield farming positions.
Additional undisclosed strategic features.

Q4 2021

NFT Utility Integration.
Partner with protocols to adopt AUSD.
More multi-chain expansion.
Add additional lending pools.
Implement Governance.
Add more protocol utility for AUSD.
Add staking vault strategies to improve capital efficiency.
Implement additional yield-generation methods for funds in our protocol.
Additional Audits.
Additional CEX listings.
Integrate with more DEXes.
Add more pools from integrated DEXes.
Fund 3rd-party teams to build ecosystem dApps off Alpaca.
Dashboards.
Trading platform with automation options, etc.
Expand institutional offerings.
Augment the lending power of the protocol; allow external parties to borrow from their deposit vaults.
Additional undisclosed strategic features.

Team, Investors and Partners

Team

Updating...

Investors

Alpaca does not have a Token Sale, so there are no investors.

Partners

Alpaca has partnered with a variety of Dapps: PancakeSwap, DODO, Wault Finance, Chainlink, TUSD,... and many more in the future.

alpaca partners
Alpaca Partners.

Is Alpaca Finance (ALPACA) a good investment?

I hope that with the aforementioned information, you have understood what Alpaca Finance is and how Alpaca Finance works. This article should give you a deep insight into the project, so there is no financial advice. You should Do Your Own Research before conducting any investment, and be responsible for your own fund. However, Coin98 will provide some notable points of the project to give you the best overview to make your own decisions.

Alpaca Finance is the first leveraged farming protocol on BSC. The team saw the lack of projects in this sector on BSC, while many had already succeeded on Ethereum. Understanding the chance and potential is the reason behind Alpaca’s achievements.
Leveraged yield farming is a brilliant model since it combines the lending & borrowing model into yield farming to increase the return on investment. However, using leverage in an already “high risk, high return” market will escalate the situation even further. Therefore, it is imperative that you consider carefully before investing in this way, especially the Impermanent Loss (IL) and Liquidation.
Alpaca Finance has planned to integrate NFT (Non-Fungible Token) into the protocol. NFT has become an explosive trend in late 2021 and is expected to obtain even more popularity in the future. Implementing NFT may be a massive decision by Alpaca that can tremendously bootstrap the project.
Alpaca introduces a very thorough roadmap. By following the project’s updates, we can see whether the team is really putting their efforts and dedication into the project, or they are just working for short-term value. As a result, we can evaluate if the project is worth the investment.

Conclusion

At the moment, Alpaca Finance has already been extremely successful on BSC with its leveraged yield farming idea. In the future, Alpaca may expand its operating range into other blockchains like Polygon in an attempt to look for other potential development opportunities in the same way they did on BSC. Together with more partners and features coming soon, Alpaca is showing positive signs in its progress.

You’ve been through an article about Alpaca Finance and the ALPACA token. I hope it has helped you in gaining more valuable insights into this project and understanding its potential.