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!
The new innovations includes
- 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
- Asset Tiers for better risk management – All assets will be available for lending and borrowing. However, based on their individual risk profiles, each asset will be categorized within one of three potential tiers that vary in their restrictions, in order to better mitigate risk:
- Collateral tier
- Cross tier
- Isolation tie
Flexible borrowing interest model – They will have the ability to customize independent interest rate models per asset & use case, which will allow them to design customized conditions to potentially make every pool and product viable and profitable!
Risk-adjusted Supply/Borrow Capacity – AF2.0 will use a two-sided approach for Safety Buffer and Collateral Factor calculations, which will help them further minimize risk for lenders and asset holders, by factoring in asset-specific risk. In this approach, each asset will have two values: Borrow Factor and Collateral Factor.
Deferred check on Debt Ratio – This improvement will allow users to realize much more flexible use cases, create customized exposures in their positions, and utilize advanced strategies.
Configurable Liquidation Methods
Cross Margin and Sub-accounts
Configurable interest rates
Flexible collateral types and Borrowing Assets
Multi-rewards for farmers
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.