BSC News

Alpaca Vaults Providing Resistance to Market Dip

The innovative high-yield product has fared well in the crypto market, providing high APYs for users.

Alpaca Vaults Stand Firm 

When Alpaca Finance launched its market-neutral Alpaca Vaults product with a high Annual Percentage Yield (APY), the protocol promised that users would invest without worrying about market conditions. The innovative high-yield product has lived up to expectations following the successful launch last month. 

Alpaca's automated vaults arrived with the commitment of running complex strategies for users to maximize their yield with high APY. While utilizing the Market-Neutral strategy to hedge against market conditions, the product has proven to withstand the recent market dip, providing high APYs up to 153% for 8x Market-Neutral vaults. 

Head of Strategy and Marketing at Alpaca Finance, Samsara, wrote to BSC News about the product’s strong performance. The core team member disclosed that the major problem that may arise would be how the protocol will sustain the need of users due to high demand. 

“The strong performance of Alpaca's Market-Neutral Automated Vaults speaks for itself and is available for anyone to view in the UI. The backtests going back a year show strong performance of over %100 APY. And performance on the actual market since launching the vaults has been even better—currently up to 200% APY. All the vaults are in profit, with minimal risk, and are built to continue as such in any market conditions. Our biggest problem is actually that our supply can't meet demand because some of the vaults are filling up in minutes," Samsara wrote to BSCNews. 
Active Automated Vaults on Alpaca Finance | Source

When Alpaca Finance launched the innovative product on March 24, only two vaults were active–One 8x Market-Neutral Vault and a 3x Market-Neutral Vault. The 8x Market-Neutral Vault launched with a high APY of 86%, which dropped due to an increase in Total Value Locked (TVL). Presently, Alpaca Finance offers users four Market-Neutral automated vaults (two 8x vaults and two 3x vaults). Interestingly, both 8x Vaults generate153.86% APYs despite the high TVL and harsh market conditions. 

According to Samsara’s statement, Alpaca Finance will look to sustain the product for users to keep earning high APYs amidst market volatility. But, for now, huge credit goes to the Alpaca team for launching a remarkable feature to the BNB Chain ecosystem. From the BSC News report on March 30, the protocol will continue to add more Vaults after the pools of existing ones reach their cap. 

Read the Alpaca Finance document HERE to learn more about Automated Vaults.  

What is Alpaca Finance?

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

Where to Find Alpaca Finance:‍

Website | Twitter | Medium | Telegram | Discord | Github 


Don’t forget to download the BSC News mobile application on iOS and Android to keep up with all the latest news for BNB Chain and crypto! 

Follow us on Twitter and Instagram!

If you need tools and strategies regarding safety and crypto education, be sure to check out the Tutorials, Cryptonomics Explainers, and Trading Tool Kits from BSC News.

How would you rate this article?

Related News