The minimum amount of assets that a user can borrow to open a leveraged position:
(*All fees below are already factored into the displayed APYs on the app. What you see is what you earn.)
4% (out of 5%) of the Position Value at liquidation goes to weekly buyback&burn of ALPACA. 1% goes to the liquidator as a reward for closing the position when Safety Buffers reaches 0.
Lending Performance Fee
Percent of the borrowing interest profit of lenders that is collected as a performance fee; 10% (out of 19%) goes to weekly buyback&burn of ALPACA. 9% goes to Alpaca's development fund.
Farming Performance Fee
Percent of the yield farming rewards portion of farmer revenue that goes to Alpaca's development fund. (Trading fees and ALPACA rewards do not incur any performance fees)
Single-Asset Farming Performance fees
10% goes to ALPACA buyback and is then distributed as performance fee sharing for ALPACA lenders (as Protocol APR). 9% goes towards Alpaca's development fund.
We employ a triple-slope interest rate model to determine the borrowing interest rate. See details below:
Interest rate at min. range
Interest rate at max. range
0% - 60%
60% - 90%
90% - 100%
Lending Interest = Borrowing Interest * Utilization * ( 1 - Lending Performance Fee)