What is Alpaca Finance?
Alpaca Finance is a decentralized finance (DeFi) protocol that operates as the largest lending platform for leveraged yield farming on Binance Smart Chain (BSC) and Fantom. It allows users to engage in yield farming with leverage, enabling borrowers to take undercollateralized loans to multiply their farming positions and thus, their profits. This setup also benefits lenders by providing them with safe and stable yields on their deposits.
The platform offers a variety of financial products including lending, leveraged yield farming, and a perpetual futures exchange. These tools aim to improve capital efficiency for users. Alpaca Finance stands out due to its fair launch model, meaning there were no pre-sales, no investors, and no pre-mines, ensuring that the platform is truly decentralized and community-driven.
The protocol's governance and utility token, ALPACA, allows holders to participate in decision-making processes, including voting on proposals that shape the future of the platform. This governance structure ensures that the community has a direct impact on the protocol's development and operations.