
Alpaca Finance
Crypto Overview
Overview
Alpaca Finance is a lending protocol built on BNB Chain (formerly BSC) and Fantom, launching in 2021. It allows users to lend their crypto assets and perform leveraged yield farming. The ALPACA token is used for governance and protocol rewards.
Purpose and Utility
The primary purpose of ALPACA is to serve as a governance token for the Alpaca Finance protocol. Token holders can vote on protocol parameters and receive a share of protocol revenues. The token is also used to incentivize liquidity providers through farming rewards.
Business Model Assessment
The core business model revolves around lending and borrowing cryptocurrency assets for yield farming, which involves interest-bearing activities. The protocol generates revenue through lending fees and liquidation fees.
Real-World Adoption
Alpaca Finance has maintained significant total value locked (TVL) on BNB Chain, indicating actual usage of the protocol. The platform has processed substantial lending volume and maintains active governance participation.
Platform Development
The project maintains active development with regular updates to the protocol. The team continues to implement new features and security improvements, showing commitment to the project's long-term success.
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