Alpaca Finance 2.0

Published on: 04.01.2023
Alpaca Finance 2.0

Alpaca Finance 2.0 which represents a major upgrade to their protocol’s core functionalities: lending and leveraged yield farming. 

Though these products have served athe community well over the past two years, it’s never too soon to innovate and make things better. So the new and improved AF2.0 will provide more features, superior flexibility, and ultimately — higher yields to the users! As Alpaca Finance goes 2.0!

  • New functionality for over-collateralized lending
  • Asset tiers in lending for better risk management
  • Cross-margin on both collateral and borrowing in lending
  • Permissionless listing in lending, allowing for infinite scale and borrowing of many altcoins, creating a shorter’s paradise
  • Multiple interest rates per every product and pool to create customized conditions for max profit
  • Asset-specific risk-adjusted weights on supply/borrow capacity to better mitigate risk
  • Borrowing of any whitelisted token, and the ability to use any whitelisted token as collateral for any LYF pair whatsoever
  • Double-layered gentle liquidation with repurchasing
  • Cross-margin for LYF
  • Multiple sub-accounts per wallet for lending and LYF
  • Multi-token farming rewards
  • Improved future upgradability
  • And more!

The first example of this is that AF2.0 will support over-collateralized lending, with the potential to use the borrowed capital externally, similar to other lending platforms like Venus and Compound. This means that lenders will now be able to borrow against their lending deposits, which is a use case many users have asked for.

Key features of the new money market


About Alpaca Finance

Helps lenders earn safe and stable yields, and offers borrowers undercollateralized loans for leveraged yield farming positions, vastly multiplying their farming principals and resulting profits.‌

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