December was a monumental month in expanding Alpaca Finance’s offerings with new DeFi 2.0 products. We launched two major platform features — AUSD, which can significantly improve our lenders’ capital efficiency; and the xALPACA Governance Vault, which gives loyal long-term ALPACA holders higher and more stable rewards. In addition, we made UI improvements, revamped the Grazing Range program, got listed on MDEX and other exchanges, conducted many AMAs, released four podcasts, hosted several Christmas-themed events, and started donating to various charities with the proceeds from our Alpies sales.
To top off what we achieved this past month, Nasdaq interviewed Alpaca Finance, and Fox Business and Newsmax, two US TV networks that each have a reach of 75 million users, aired the interview. We were also nominated the Best New Decentralized Finance Application of the Year by PANews.
With these new products, a great thread on the $ALPACA token’s upgraded value proposition is provided here. Our fully diluted valuation/total value locked (shown below) remains the lowest among major similar DeFi platforms, indicating ALPACA is an undervalued investment opportunity.
💰Launch of AUSD
We launched AUSD! Information on AUSD is provided in our launch article and our Docs. In brief, AUSD is Alpaca Finance’s stablecoin and serves to significantly improve our users’ capital efficiency in several ways. For example, users who lend BUSD on our platform can now not only earn interest (~6%) from borrowers conducting leveraged yield farming but also use their interest-bearing BUSD (ibUSD) as collateral to mint AUSD. AUSD can then be:
- Swapped for BUSD on PancakeSwap; the BUSD can be used to earn yields on Alpaca Finance or other platforms, or be used to leverage long on bullish assets.
- Used to provide liquidity in AUSD-BUSD on PancakeSwap to earn trading fees. The LP tokens can then be staked on Alpaca Finance for 12.2% APY. A step-by-step guide is here.
We also launched the AUSD Stable Swap Module, which allows any user to swap BUSD for AUSD (or AUSD for BUSD) at a 1:1 ratio, given enough liquidity of BUSD or AUSD in the module. This module is similar to Maker’s peg stability module (PSM) and serves to facilitate arbitrageurs and maintain AUSD’s peg to BUSD, as explained in this tweet thread and in our Docs on AUSD.
Currently, we are only allowing ibBUSD to be used as collateral, but we plan to onboard Alpaca’s other interest-bearing assets (ibBNB, ibETH, etc.) soon. With the recent explosion of Abracadabra’s MIM, we are proud to have predicted that the collateralization of interest-bearing tokens is ushering in a new and more powerful DeFi 2.0. Our early strategic decision in building AUSD and future plans to build creative DeFi legos around AUSD will strengthen Alpaca Finance’s position as the most capital efficient protocol on BSC (and multiple chains as we expand).
🗽xALPACA, The Governance Vault, and The New Grazing Range Program
In addition to AUSD, we also launched another major platform feature this month— xALPACA and the Governance Vault, which comprises the first phase of our governance system, as detailed in this launch article and our Docs.
With this new feature, users can lock ALPACA in the governance vault to get xALPACA. Locking 1 ALPACA for 1 year will give the user 1 xALPACA; locking 1 ALPACA for 6 months will give the user 0.5 xALPACA. When a user locks ALPACA, they will immediately receive the maximum balance of xALPACA. Their xALPACA balance will then linearly decrease to zero as the end of the lock period approaches(you can extend the lock period at any time). Currently, xALPACA is not a transferrable token.
The amount of xALPACA that users have will proportionally determine their voting power (not yet launched) and staking rewards. Staking rewards are derived from the new Grazing Range program, ALPACA emissions, and an increased Protocol APR (as detailed in the launch article). Currently, xALPACA holders can earn 12.8% APY in ALPACA from ALPACA emissions, 25.3% APY in ALPACA from the Protocol APR, 9.2% APY in THG (Grazing Range), and 3.5% APY in PAYB (Grazing Range), for a total of 58.7% APY. As we add more Grazing Range partners and as our protocol revenue grows, the rewards for locking your ALPACA will also grow.
This month, we added PayBSwap (PAYB) and Thetan Arena (THG) to the new Grazing Range program. xALPACA holders will earn $240k USD in THG and $91k in PAYB, distributed over 8 weeks. To receive the Grazing Range NFT, you need to have a balance of 500/5,000/50,000 (3 tiers) xALPACA for 4 weeks, starting when rewards are emitted. The best way to learn when new Grazing Ranges open is to follow our Twitter.
Our governance vault is a fork of Curve DAO’s governance. We believe this is one of the best models to give loyal token holders more value from our protocol. Locking of ALPACA should reduce its selling pressure, and when combined with ALPACA’s deflationary nature, should have a positive impact on price. Currently, over 25% of all circulating ALPACA has been locked for an average of 32 weeks.
This month, we added another new PCS farm:
- THG-BNB (2x) 457% APY
We will continue to add new farms with our existing and future DEX partnerships.
🔥ALPACA Buyback & Burn
In December, we burned 3,625,552 ALPACA (~$2,175,000) over 4 weeks, representing an average weekly burn of 906,388 ALPACA, setting another record for monthly burns. ALPACA has been deflationary for the 7th straight week. The total cumulative burn is now 12Mn+ ALPACA (6.5% of total supply). We made a series of graphs on Dune Analytics that more clearly show the positive trend in ALPACA’s deflationary tokenomics.
We hope to again refer our readers to an excellent analysis of our tokenomics by a community member, who explains ALPACA’s deflationary nature through buyback&burn and how these economics will lead to a natural rise of the ALPACA token’s price over time.
ALPACA is now listed on MDEX, the second-largest DEX on BSC, complete with an ALPACA-BNB farm (with MDX rewards)! ALPACA also became listed on WhiteBIT (500,000 European user base), Changelly (2 million user base), and FMFW.io.
A full list of CEXes and DEXes where you can buy ALPACA is available in our Alpaca Academy Lesson 0. We will continue to pursue ALPACA listings on all of the major CEXes and DEXes.
We started working on conceptualizing Alpaca financial products for institutions last quarter, and for that, we’ve been busy growing relationships with top partners ever since. Look forward to our developments in this area in the first half of 2022.
We hosted several Christmas events for the Herd this month. We partnered with 1000Blocks to give exclusive access for Alpie holders to creatively decorate a 1000 block canvas, which was then minted into an NFT and given to participants. We also held an Alpaca Xmas Tree contest, where participants decorated their Christmas tree with an Alpaca ornament. Finally, we hosted three Alpaca Game Nights where participants received Christmas-themed NFTs.
We also hosted many AMAs this month and gave NFTs to those who participated in our AMAs with CoinDCX, KuCoin JP, Tokocrypto, the Japanese Crypto Comunity, and Indigochild/Coin City.
We gave Christmas-themed Game Night NFTs to those who participated in our last three Alpaca Game Nights, where we played Krunker, Crab Games, and Pictionary.
And, finally, we gave a special holiday NFT to all users who deposited any amount of tokens on our Lend page.
All NFTs can be claimed and viewed on Project Galaxy and traded on the secondary markets on NFTrade and Treasureland. On NFTrade, you can search specific NFTs by category to easily find the one you want to buy.
👨👨👦Twitter Spaces Fireside Chats and Our Other Insightful Podcasts
We hosted two more of our biweekly fireside chats with our Head of Business Development James, our Head of Strategy and Marketing Sam, and our Head of Institutional Growth Pete. Hear their thoughts on recent and future key developments in DeFi and other hot crypto segments below.
8th Fireside Chat (Dec. 1, 2021)—L1s, ZK rollups, OHM forks, DAOs, metaverses, games, announcements
9th Fireside Chat (Dec. 16, 2021)— protocol commercialization, open-source VS IP, Nike, L2, Sushiswap, DAOs, current environments, project valuations, AUSD
Pete Woodard also hosted the Snapshot Podcast Ep. 1 with GSR.io, one of the largest crypto market makers today.
Finally, listen to James and Pete discuss the hottest trends in crypto on Alpaca Finance’s official monthly podcast— the Cryptopaca Podcast.
This month, we passed our third audit for AUSD from SlowMist and an audit for xALPACA from Inspex. All audits are listed on our Transparency page.
☀New User Interface And New Tools
We added the Portfolio, AUSD, and Governance page to the UI to accommodate our newly added features. We also released a Performance Patch, which reduces the data refresh interval, and uses fewer networks calls and CPU.
Our Discord now has multi-language support, so messages sent in any language channel will be translated & sent to all the other language channels, allowing our multilingual user base to seamlessly communicate with each other.
On a final note, one of our community members created a useful Grazing Range calculator.
We began distributing a pledged percentage of our Alpies sale proceeds to charities around the world, with the majority dedicated to giving alpacas at animal sanctuaries a better life. Completed donations include:
$25,000 to the Tree Millions Program from Binance, an ambitious effort to plant 10 million trees worldwide, promote environmental awareness, and partner experts to find solutions to help the environment.
$26,000 to Cross Creek Alpaca, one of the oldest and largest alpaca sanctuaries in the U.S.
$5000 to Firwood Farm Alpacas, a small alpaca sanctuary run by the lovely Leanne.
We have a long list of charities we plan to donate to, in order to maximize the impact we can have on mitigating the human-created problem of domesticated animals being neglected and requiring care.
Other news and developments in December include:
- Shinobi Wallet integrated Alpaca Finance in their in-app lending service
- Messari Hub integrated Alpaca Finance, offering insightful metrics of our platform
♠Alpaca Game Night♟
Take a break from farming and join fellow alpacas in our Alpaca Game Nights, hosted on Discord every Saturday. Follow our Discord Announcements to learn how to participate. All participants get a themed Game Night NFT and winners get ALPACA prizes.
The new year will bring many exciting new developments. We will continue to develop our GameFi goals, which is a sector that is only becoming increasingly popular as crypto develops. As many have asked, we will indeed strive to build toward a multi-chain future, which has long been in the works. With the successful launch of AUSD, we can now begin building creative DeFi legos around our own stablecoin. And finally, with DAOs showing how powerful they can be, we aspire to build a robust governance system that can correctly align incentives.
Our milestones have been outlined in our 2022 roadmap but we’ll soon release a roadmap update for January with more detailed information on our progress and plans in all areas. Follow our Twitter and be the first to know of our newest updates!