Risk on Alpaca Finance


Alpaca Finance is a decentralized leveraged-yield farming platform where users can stake and borrow funds in order to maximize their yield farming rewards.






Total value locked: $ 607,7416,211.35

Market Cap: $ 40,716,866

                                                            UTC 2021.04.13 02:49



Type: BEP-20

ALPACA Token Distribution:

MAX Supply: 188,000,000

Total Supply: 19,905,186

Circulating Supply: 6,618,686



We will soon launch a governance vault that will allow community members to stake their ALPACA tokens; stakers will receive xALPACA where 1 xALPACA = 1 vote, allowing them to decide on key governance decisions.

Capture Economic Benefits of the Platform

We will let the community decide how they want the economic incentives to be captured by the ALPACA token ; For example, it could be similar to Sushiswap where x% of fees generated go to perform token buyback and burn. In fact, upon launch of leveraged yield farming, there will already be several mechanisms in place making ALPACA deflationary in nature.

Accrue Value Through Deflation

Deflationary mechanisms for ALPACA:

Every time our liquidation bot liquidates a leveraged position, it receives 5% of the position’s value as a fee. 100% of those fees will go towards buybacks and burns of the ALPACA token.

When a borrower takes out a loan of tokens in order to engage in leveraged farming, they pay a fee to the lender in interest. 10% of that interest will go towards the protocol fee, of which half(5%) will be used on buybacks and burns of the ALPACA token.

Why have we chosen to go with token burn instead of direct fee distribution? Because burn is also a method of fee distribution, only it’s more efficient at increasing token price. Burn directly lowers available supply which increases the value of the remaining tokens. Instead of giving out protocol earnings as yields that users can, and often do, dump on the market, through burn, these earnings embed into the token price itself, which discourages selling because users would have to sell part of their principal. This is a more effective way of both rewarding long-term holders, and creating them.

Protocol Utility

ALPACA tokens will be a fundamental part of future initiatives providing protocol utility. In particular, we’re planning an NFT integration that will require ALPACA tokens to participate, and will offer benefits relating to various aspects of leveraged yield farming such as higher available leverage level, higher lending rates for lenders, lower lending rates for borrowers, and more.

Official Links

Website: https://www.alpacafinance.org/

Github: Alpaca Finance · GitHub

Contracts on BSC: 0x8f0528ce5ef7b51152a59745befdd91d97091d2f

Roadmap: Roadmap - Alpaca Finance

Audit Report: N/A

Risk Framework

No audit report was published.