Introduction to Lending

Whether you’re a beginner to DeFi or a professional institutional user, Alpaca Finance offers a way for you to earn substantial profits safely while doing something as simple as holding your favorite tokens. In our platform, this is Lend & Stake. With these two easy steps, you can deposit your tokens to start earning the highest yields in DeFi among lending platforms for single assets.
Such high APYs can be sustainably achieved because Alpaca’s technology offers uniquely high capital efficiency to borrowers, allowing them to open undercollateralized loans for yield farming. As a result, our utilization rates and lending interest rates are consistently 2x(or higher) than that of other protocols.
At the same time, this model is also very safe for lenders, because unlike other lending platforms, borrowers cannot withdraw the borrowed funds from Alpaca. So the use and return of the funds are tightly controlled by the protocol, ensuring lenders receive their funds back.
Our protocol has conservative and quick liquidation settings to make sure bad debt does not occur. What’s more is unlike other protocols, Alpaca has no deposit fees, no withdrawal fees, and no default lockup, so you can deposit and withdraw at any time.