247
Premium leverage and yield farming protocol Alpaca Finance has launched on the Fantom network today after finding sustained success on BINANCE Smart Chain. Initially, a handful of Alpaca services will be accessible, with plans to extend its full capabilities shortly to Fantom and more chains.
Alpaca found success in offering leveraged yield farming on BSC. A practice whereby traders can level up their yield farming position by borrowing money from liquidity pools and adding it to their liquidity to yield farm. As a result of having more liquidity, a higher return can be expected. To date, the total value locked in Alpaca stands at over $577 million.
To incentivize lenders and leveraged yield farmers over the first four weeks, Alpaca have provided 180,000 ALPACA in rewards. Users will be able to claim these ALPACA rewards at any time in the same way it works on BSC. Notably, the team will reevaluate the value of rewards to continue providing depending on TVL towards the end of the first four weeks.
Alpaca roadmap on Fantom
As mentioned, Alpaca is rolling out limited services with a view to full operations on Fantom in the coming weeks and months.
Tuesday 15th Feb, 7 am UTC
- Users can start depositing FTM and USDC on Lend page
- Users can start staking ibUSDC and ibFTM on the Stake page
Tuesday 15th Feb, 8 am UTC
- ALPACA rewards emissions starts for ibUSDC and ibFTM staking
Tuesday 15th Feb, 10 am UTC
Users can start opening leveraged yield farming positions in the below pools on the Farm page. ALPACA rewards emission also starts for LYF positions.
- FTM-USDC (double-sided borrowing)
- BOO-FTM
- TUSD-USDC
- wETH-FTM
Thursday 17th Feb, 10 am UTC
- Add ALPACA lending pool
- Add support for ALPACA-FTM leveraged yield farming pool (double-sided borrowing)
Tuesday 22nd Feb, 10 am UTC
- BTC-FTM
- fUSDT-FTM
- DAI-FTM
- MIM-FTM
Stated hours are approximations and are taken from the Alpaca official release article. Actual deployment time might be slightly different due to various factors such as network traffic.
Bridging ALPACA to Fantom
Those holding ALPACA on BSC can bridge tokens from BSC to Fantom via Multichain for new opportunities. At launch, two utilities for ALPACA on Fantom will be:
- Deposit ALPACA in the lending pool to earn yields
- Provide liquidity in the SpookySwap ALPACA-FTM pool, with or without leverage
For those unfamiliar with bridging tokens, Alpaca has prepared a step-by-step guide.
Benefits to the Alpaca Finance Community
Multi-chain expansion means current and new Alpaca users will have more opportunities to earn yields and get exposure to different tokens that do not currently exist on BSC. Additionally, an increase in TVL, lending, and borrowing means more buyback and burn each week and more revenue to distribute to governance stakers. Notably, there will be no new tokens on Fantom with the benefits of any multi-chain growth going to ALPACA holders.
Finally, while Alpaca has forged a solid reputation on BSC since launching in early 2021, the expansion to Fantom will bring more attention to the services provided by Alpaca.
Why Fantom Network
Fantom is EVM-compatible for starters, which simplifies a lot of the development efforts. In addition, it ensures Alpaca can release products in a reasonable timeframe. It has the required infrastructure to support operating subgraph, and oracle services to provide an accurate data flow between dapps and price oracles. Additionally, Alpaca will be able to tap into liquidity on Fantom’s leading DEX SpookySwap.
TVL on Fantom has grown more than 100% in the last month. The chain is now sitting in 6th regarding total TVL, according to DeFi Llama. Recently, prominent projects and developers have also announced plans to launch products on Fantom. As more leading dapps grow Fantom’s ecosystem, allowing for greater composability and more opportunities for Alpaca to expand its services. Moreover, now DappRadar is tracking Fantom dapps, more than 1 million monthly site visitors can potentially discover Alpaca on Fantom.
Of course, Fantom also has one of the most attractive and transparent grant programs for protocols developing there. Based on the metrics required, Alpaca should qualify for the grant, and hopefully, use 100% of it to reward platform participants.
Although BSC is known for low fees and fast transactions, based on the current gas price on the FTM network, a typical transaction on the Alpaca Finance platform would cost 0.10 to 0.50 USD.
Finally, the aBFT consensus mechanism utilized by Fantom allows nodes to reach consensus independently without exchanging finalized blocks. Less network communication between nodes results in a faster and more scalable blockchain.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds ETH, BTC, AGIX, HEX, LINK, GRT, CRO, OMI, IMMUTABLE X, GALA, AVASTR, GMEE, CUBE, RADAR, FLOW, FTM, BNB, SPS, WRLD, ATOM, and ADA.
