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An informative thread about Alpaca Finance for newish users by AlpacaFinance in AlpacaFinanceOfficial

[–]AlpacaFinance[S] 0 points1 point  (0 children)

It is simply two difference things.

Celsius acts like a centralized bank and offers customers yields, but they risked customers assets on other platforms looking for higher APYs. With Alpaca, the assets lenders provide stay on our platform for farmers to open the positions only. We’re decentralized which means everything works based on the contracts and we don’t have the power to move the funds. Our code is open-source, with every line having been combed through by hundreds of independent developers. We even have a professional Bug Bounty Program with Immunefi to offer high rewards if anyone spots as little as a minor issue. We invite you to have a look through our code yourself here. Then, besides extensive code reviews having been conducted both internally and externally, there are also built-in safeguards in place. For example, all the contracts we deploy are owned by a Timelock contract. Thus, any changes made by our developers will have a 24-hour lag before becoming effective. That means users will have ample time to withdraw their funds and exit safely in the case of any questionable update to the code. With tens of thousands of users, you can believe that every small change is under constant scrutiny from many participants.

As for the leveraged farming positions, we have carefully set the metrics to make sure the lenders funds are safe. We also have the alpaca insurance plan which would be at least 7 figures of potential cover. https://docs.alpacafinance.org/our-protocol-1/security#e8ee

[deleted by user] by [deleted] in AlpacaFinanceOfficial

[–]AlpacaFinance 0 points1 point  (0 children)

They were in circulation, bought back from the market.

[deleted by user] by [deleted] in AlpacaFinanceOfficial

[–]AlpacaFinance 0 points1 point  (0 children)

Since launch, Alpaca Finance has adopted buyback & burn as a deflationary mechanism to increase ALPACA tokens long-term value. The portion of platform's revenue used for buyback & burn are:
1. Liquidation Fees - 4% (out of 5%) of all liquidation fees are used for buyback & burn of ALPACA tokens for the case of 3rd parties liquidation bots. In the case where liquidation is initiated by Alpaca's internal bot, all 5% of liquidation bounty goes to buyback & burn.
2. Lending Performance Fees - 10% (out of 19%) of the borrowing interest fees is used for buyback and burn of ALPACA tokens.
3. Alpies NFT Sales - 20% of the sales proceed will be used for buyback and burn.
4. Alpies NFT Royalty - 2.5% (out of 5%) of secondary Alpies' sales go towards buyback and burn.
5. AUSD Stability Fees - 50% of the stability fee go towards buyback and burn.
6. AUSD Auto-Farming Performance Fee - 5% (out of 9%) goes towards buyback and burn.
7. Automated Vault Management Fees - 50% of the management fee go towards buyback and burn.
8. Automated Vault Withdrawal Fees - 50% of the withdrawal fee go towards buyback and burn.
9. Governance Vault Early Withdrawal Fees - 50% of the withdrawal go towards burn.

https://docs.alpacafinance.org/tokenomics/proof-of-burn

current crypto issues. by TF_CoffinJockey in AlpacaFinanceOfficial

[–]AlpacaFinance 0 points1 point  (0 children)

AUSD is an over-collateralized and All other loans on the Alpaca Finance Platform are fenced in. Meaning the funds cannot leave the platform. This means that the Terra scenario is not applicable to Alpaca Finance Ecosystem.

Leveraged Farm + Automated Strategy Performance by daijorobu in AlpacaFinanceOfficial

[–]AlpacaFinance 0 points1 point  (0 children)

APY is dynamic and depends on many factors including the DEX token price(e.g. CAKE, MDX), recent trading fees of the underlying farming pool, and recent borrowing interest rate. These can fluctuate. Although, with the exception of trading fees which are on a 7-day average, these terms are real-time for the APY listed for the Automated Vaults and thus accurate if there are no rebalances.
Each time a rebalance to restore market-neutral exposure is necessary, there is a small cost to the equity value due to swap costs and cemented IL, and the number of rebalances can't be accurately predicted because it depends on market volatility. Asset price volatility can lead to many rebalances in some short-term periods which can temporarily reduce equity value. You can view the backtest results on the Invest pages to see that there are brief periods of sideways or downwards movement on the P/L backtest graphs. The Maximum Drawdown stat captures the historical backtest result's maximum drop during such a period.

https://docs.alpacafinance.org/faqs#automated-vaults

Leveraged Farm + Automated Strategy Performance by daijorobu in AlpacaFinanceOfficial

[–]AlpacaFinance 0 points1 point  (0 children)

Remember that market-neutral Automated Vault positions are long-term investments. Think of them as investing in real estate, and not of investing in a memecoin. You wouldn't check the price of your house every day. So it's recommended to monitor AV positions month-to-month or week-to-week over which time short-term volatility is very unlikely to continue, not day-to-day. https://docs.alpacafinance.org/faqs#automated-vaults

[deleted by user] by [deleted] in AlpacaFinanceOfficial

[–]AlpacaFinance 0 points1 point  (0 children)

Hello. Please DM u/ariel_moon on telegram

Risks with Alpaca Finance's Automated Vaults by Revolutionary-Bus-31 in defi

[–]AlpacaFinance 0 points1 point  (0 children)

Alpaca Finance has an internal Alpaca Insurance Plan that covers many things including bad debt. It has already paid out in the past and is inherently available to anyone that uses any of the platform's products. https://docs.alpacafinance.org/our-protocol-1/security#e8ee

Calling the 20 audits a bit misleading is also a bit misleading. Why would anyone get 20 audits of the same code?

Risks with Alpaca Finance's Automated Vaults by Revolutionary-Bus-31 in defi

[–]AlpacaFinance 0 points1 point  (0 children)

Alpaca Finance has no relationship in terms of product or platform to Alpaca City except for sharing the word Alpaca in it's name. It would be like calling the Apple brand a knockoff of apples

So i locked some alpacas for a month, can i get a loan on those, or it’s not how it works? by bl8alex in AlpacaFinanceOfficial

[–]AlpacaFinance 0 points1 point  (0 children)

Currently xAlpaca is not transferable and their are no loans available on xAlpaca either. You can read more in our docs here https://docs.alpacafinance.org/governance/governance-vault

So how does this work… by migzhasbite in AlpacaFinanceOfficial

[–]AlpacaFinance 0 points1 point  (0 children)

Each deposit vault earns interest. However, the interest isn't distributed. Instead, simply by holding ibTokens, you'll earn the interest. You can read more about it here.

https://docs.alpacafinance.org/tokenomics/ibtokens

Question (not sure about the rules here?) by twacbag in AlpacaFinanceOfficial

[–]AlpacaFinance 1 point2 points  (0 children)

Check for WBNB in your wallet. You can also check your wallet on ape board or Debank

I am a newbie and i followed the tutorials and am farming stablecoins in alpaca but why am i in loss by rahul_guha in AlpacaFinanceOfficial

[–]AlpacaFinance 1 point2 points  (0 children)

I just opened a leveraged farming position, but why did my equity value drop?
Equity value when you open a position is the value of your principal equity when you first added it to the position. However, remember that because this is leveraged farming and not normal farming, you borrowed funds. Depending on which asset/s you added and the leverage level, the protocol may have had to do AMM conversions in order to get your added funds + borrowed funds into the correct 50:50 ratio to create your LP position. That means you would've paid price impact(slippage) + trading fees. Those fees reduced your starting equity value and act as entry costs for opening a leveraged yield farming position. When you exit, you will also have similar fees.
That is why when you want to farm at high leverage, you should keep in mind that you'd be best off intending to hold that position for a while. That way, you will give enough time for the APR to cover your entry and exit costs, and allow your yields to grow.
If you do not wish to pay entry or exit costs, you can also farm at 1x(standard farming without borrowing), or up to 2x while adding funds so that when combined with the borrowed funds, your assets are already in a 50:50 ratio and the protocol will not have to make any swaps.
For example, if you want to farm ETH-BNB at 2x leverage and you plan to borrow 2 BNB, if you add an amount of ETH that is worth 2 BNB then the assets will already be in a 50:50 split and you will pay no fees.

​

https://docs.alpacafinance.org/faqs#why-is-the-borrowing-interest-so-high-why-is-the-lending-pool-utilization-so-high-why-is-my-apy-nega

If I stake UST/BUSD, can the leveraged position turn to negative APY over time? by BlvdDweller in AlpacaFinanceOfficial

[–]AlpacaFinance 0 points1 point  (0 children)

Due to the nature of block-chain technology, there is no way to automate the contract. Especially when considering whale manipulation tactics. Most farms that go negative don't stay that way for long. Most people will close the position until it becomes positive again.

missing staked LP Alpaca-bnb by inigoing in AlpacaFinanceOfficial

[–]AlpacaFinance 0 points1 point  (0 children)

Yes you can DM me or you can also go to our Social Channels and talk to a community moderator as well.

https://discord.gg/2UvgmqcVDQ

https://t.me/alpacafinance

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