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Introduction to Alpaca Finance 2.0

AF2.0 represents a major upgrade to our protocol’s core functionalities: lending and leveraged yield farming. Though these products have served all of us well over the first 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 our users!

The new innovations include:

  • 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!
So without further ado, let’s get into the details!

🔧Other Technical Improvements

  • Improved future upgradability: Our smart contracts will utilize Diamonds, multi facet proxies, which get around the contract size limitation, something that has limited us in the past from developing new features on certain contracts. Going forward, Alpaca will have the potential for unrestricted upgrades and improvements.
  • Modular Architecture: LYF, Money Market, AV modules are all written separately for future composability.