Gate.io AMA with Alpaca Finance-The Largest Lending Protocol Allowing Leveraged Yield Farming on BNB Chain and Fantom

2023-07-17, 08:08

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**<font size=4>Time: Nov 20th, 2021, 13:00 UTC
[Gate.io](https://www.gate.io "Gate.io") hosted an AMA (Ask-Me-Anything) session with Tonichi, Regional Business Development Manager of Alpaca Finance in the [Gate.io Exchange Community](https://t.me/gateio "Gate.io Exchange Community").
Official Website: https://www.alpacafinance.org/
Twitter: https://twitter.com/AlpacaFinance
Follow Alpaca Finance on [Twitter](https://twitter.com/AlpacaFinance "Twitter") and [Telegram](https://t.me/alpacafinance "Telegram")
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**Guest**
![](https://gimg2.gateimg.com/image/article/16895812522.jpg)
**Tonichi — Regional Business Development Manager of Alpaca Finance**
## Q&A from Gate.io
### Q1: For the information of everyone, what is Alpaca and what is the project aiming to achieve?
**Tonichi**: Sure ! So let me give you a brief background of ALpaca then use an example to show you guys how to best earn from Alpaca
and how it compares to the more traditional investments.

In return, Pancake swap gives you a portion of the trading fees, and gives you rewards in Pancake swap token as well, which is automatically invested into his position because in Alpaca Finance, we want you to <a href="/vi/price/compound-comp" target="_blank" class="blog_inner_link">Compound</a> your interest as much as possible, giving you the absolute best returns!

And guess what… Julian also gets rewards in Alpaca Token as a bonus!

Which he can then claim and even reinvest that into our Grazing range (more about that later) and earn our partner projects tokens as rewards with an APY of hundreds of %, sometimes even thousands if you’re early!.

The biggest problem Alpaca Finance solves is capital utilization, so this means that we are able to connect lenders who want to earn high interest rates (side comment.. NO MORE 3% PER YEAR PLS) with leveraged yield farmers, who use those funds to increase their gains when they farm. So really… EVERYONE WINS
This helps both lenders and farmers as lenders get to earn a higher interest rate because farmers can borrow more, increasing the utilization rate for that token.

And when the utilization rate goes up, that means that more people want to borrow.

Since more people want to borrow, the interest rate for the lender also goes up since there is only a finite amount of tokens! Law of supply and demand in its simplest form!

Furthermore, within all of BSC, we’re a blue-chip project, one of the leaders across all metrics.

We have roughly $1.4 billion US dollars in TVL(total value locked, meaning all the funds in a protocol at a given time) , tens of thousands of user wallets, and have always been top 5 in trading volume across all blockchains.

As of the last week of October, we also have the 2nd highest volume in the BSC and 4th across all chains in DEFI beating other protocols like Compound, 1 Inch  and many others as well!

Not bad for the new kid in the block who only started a couple of months ago. ;);) Already beating the big boys in terms of volume.
And why is this?  This all because we have give our users a great user experience, great security, and even greater yields!!!

sorry i know that was a bit long, but I wanted to fully explain what we do in a way that is easy to understand, even when defi and crypto in itself isn;t the easiest thing to learn in the world.

### Q2: A problem of many DeFi protocols is security. We've seen problems with flash liquidations, market manipulation and funds being stolen from the protocol. How safe is Alpaca in terms of security?
**Tonichi**: To add, I’d like to talk to you about our in-house Alpaca guard, which protects you from dangers in the market.
This is something that is EXTREMELY unique to Alpaca, and let me tell you why.

To be specific, when the price of an asset in your farming pair has its on-chain price from the exchange that pair is on(<a href="/vi/price/pancakeswap-cake" target="_blank" class="blog_inner_link">PancakeSwap</a>/waultswap/MDEX) differ more than 10% from the median of a batch of off-chain oracles we verify with, the Alpaca Guard enters Protection Mode; This consists of disabling liquidations, and opening/closing
positions; all in order to protect you from trading at bad prices and taking an unjust loss.

When the entire market flash crashed a couple of months ago, the Alpaca guard went into action, protecting many users’ positions from flash liquidations so they can trade at much better prices!

Think of the Alpaca guard as your own personal security guard ;).  A personal security guard for your funds!

Sadly, other protocols do not have their own security guard and that’s because it’s very hard to replicate this kind of technology.
Our team of developers are extremely intelligent and we thank them for giving us our own personal body guard so that our users feel safe farming in Alpaca :)

Lol saying that I have my own security guard kinda makes me feel like a king :)).

But that's how we like to treat our users…... like royalty...

### Q3: Nice to hear that security is a priority. Seems many projects left that out! Why did you guys launch Alpaca? What is the rationale behind it?
**Tonichi**: The exchanges also benefit, because they now have much more liquidity, allowing for lower price impact which makes for easier and more profitable trading. This is DeFi boosted and magnified.

Yet, this can only happen with our tech, which is difficult to replicate, maintain, and grow, which is why we have so few competitors, and why Alpaca has grown so fast — because we build faster than others.

So, our model is unique. Alpaca is an amplifying liquidity layer for all of DeFi, and we aim to become an irreplaceable one.

Right now, we have $1.4 billion TVL but we’re only on PancakeSwap, Waultswap & MDEX for now.

What’s going to happen when we integrate more exchanges? How about more blockchains?

We’re planning on bringing this technology to more blockchains so that lenders can earn more interest, farmers can earn more yield, decentralized exchanges can have more liquidity, traders can have much better trading experiences and EQUAL OPPORTUNITY

This is why we did a fair launch.

This is why our team locked their tokens for 2 years.

People like you deserve better yields, in a way that is extremely safe and secure.

This is the fundamental reason why we made Alpaca. To give people an equal opportunity. POWER TO THE PEOPLE!! Or as I like to say… POWER TO THE ALPACAS!!

### Q4: So now, can you tell us what is the utility of the $ALPACA token? What can I do on the platform with $ALPACA?
**Tonichi**: 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.

We believe in a truly decentralized society where key decisions are made by the community, for the community.

Gone are the days when one single entity will control every decision, and usually… for their own benefit ...and to the disadvantage of all the others.

Alpaca does the COMPLETE OPPOSITE.

In terms of earning, I’ve already mentioned where as lenders, you can earn safe and stable interest on your crypto.

I’ve also mentioned how farmers can earn much higher yields using undercollateralized loans. I’d also like to talk about the Grazing Range.

In the Grazing Range Program, ALPACA holders, or more specifically holders of ibALPACA (think of this as a receipt for lending your Alpaca) , can stake their ibAlpaca in the Grazing Range pools (Yes, you can earn even more money from your receipt)

Here, they receive token rewards from partner projects like Phala network, division network and many more earning APYs up to the hundreds of %, in addition to the yield from farming your chosen token pair!

And if you graze your Alpaca in the grazing range for a certain period of time, you’ll be able to earn limited edition NFTs as well, which you can then sell in the open market for even more gains!

Alpaca NFTs are known to have high values in the market because of the community, design and use case behind them.

I know that you might be confused right now, but just think about it like this.
Step 1, you lend your Alpaca.
Step 2, you get ibalpaca back (receipt for lending)
Step 3. You stake your ibalpaca (receipt) in our grazing range to a coin of your choice.
Step 4. You graze for 27 days and earn NFTs.
Step 5. You may sell these NFTs in the marketplace. Oh and btw, you’re earning interest on all of this! That’s a lot of steps, and a lot of profit!

### Q5: I’ve heard that Alpaca Finance just ended the sale of your NFTs called Alpies, which will act as characters in a play to earn game come next year! Can you tell us more about this?
**Tonichi**: Gaming is a domain we’ve planned to get involved in for quite a while. We’ve been working on a play-to-earn game since earlier this year, since before Axies and play-to-earn blew up. We’re now moving out of the game design phase and into the development phase.

Our NFT Avatars, called Alpies, will function as characters in our play-to-earn game come this Q2. They consist of a 10,000-piece NFT collection, which we have released in two parts on BSC and then ETH.

Alpies are composed of 5000 dark themed NFTs called “The Dauntless”, which were sold on BSC, and 5000 light themed NFTs called “The Dreamers” which were sold on Eth.

![](https://gimg2.gateimg.com/image/article/16895812793.jpg)
![](https://gimg2.gateimg.com/image/article/16895812984.jpg)
50% higher max leverage on Alpaca Finance
Future NFT airdrops/giveaways
Beta access to Alpaca game
Higher game stats
Exclusive free game items
High-quality NFT Breeding
Access to exclusive Discords (Illamanati for Dauntless, Knights Tempaca for Dreamers, and both can access The Paws That Be)
Exclusive access to Alpaca physical merch

On a final note, the game will feed back value to ALPACA holders through revenue sharing, and this will be the case with any product under the ALPACA brand.

So once again… VALUE TO ALPACA HOLDERS!!

As for the sales proceeds from the NFTs, 20% will go to ALPACA HOLDERS through buybacks and a mix of burn and distribution sharing.

In addition, 5% will go to ALpaca oriented charities and rescue operations to help real Alpacas in need. How can you not help these extremely adorable and cute animals!!

I’m also happy to say that Alpaca Finance has had a successful NFT launch for our game and we managed to raise $6.3 million during our sale! I’m very excited for our game and I hope you guys are too.

<div class="blog-details-info">
<div>Author:** Rio Fu.**, Gate.io Community
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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