DeFi

Alpaca Finance Reveals New Look for Automated Vaults

Alpaca Finance's new assets repurchasing method will be tested first on the BNB-BUSD PancakeSwap vault.

Assets Repurchasing

BNB Chain yield farming platform Alpaca Finance announced it would begin upgrading one of the project's core products, Automated Vaults, to address the challenges of Transaction costs and Impermanent Loss.

In this revamp, instead of swapping assets on a Decentralized Exchange (DEX) (subject to a price impact and 0.25% swap fee), Alpaca Finance will allow repurchasers to trade directly with holdings in the project's vault without facing these fees through a new solution called Assets Repurchasing.

The benefits of this repurchasing system for Automated Vaults investors include lower swap fees, no price impact on large swaps, and more frequent rebalancing. All of these features should have a direct effect on Automated Vaults % APR improvement. The team said they've rerun the test with this new method and have seen markedly improved results.

“Compared to the current rebalance method, the return from repurchasing is stabler and more profitable. Even during extreme volatility during May-June, repurchasing would have been profitable,” said the Alpaca Finance Development Team.

Alpaca Finance will test the new repurchasing method on the BNB-BUSD PancakeSwap vault. The repurchasing operation was projected to go live around Aug. 25, 2022. The reason for this single-vault deployment is that the team wants to closely monitor the vault's activity and make adjustments promptly. Once proven that the new repurchasing method is beneficial, the project will roll out to the remaining vaults.


What Is Alpaca Finance:

Alpaca Finance is the largest lending protocol that allows leveraged yield farming on BNB Chain. It helps lenders to earn safe and stable yields, and offers borrowers undercollateralized loans for leveraged yield farming positions, vastly multiplying their farming principles and resulting profits.‌

Alpacas are a virtuous breed. That’s why Alpaca Finance prides itself on being a fair-launch project with no pre-sale, no investor, and no pre-mine. From the beginning, the project has always been a product built by the people, for the people––or as the Alpaca team likes to say: by the Alpacas, for the Alpacas.


Where to Find Alpaca Finance:

Website | Twitter | Telegram | Discord | Medium | GitHub |

How would you rate this article?

Related News