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      • Strategy 1: Hold a Token While Earning High Yields at Low Risk; aka Lend & Stake
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    • 🌊AF1.0 Liquidation
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      • Open a Leveraged Yield Farming Position
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  • Alpaca Finance 2.0
    • 💎Introduction to Alpaca Finance 2.0
      • Money Market
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    • 🗒️AIP Details
      • AIP-1: Handling of ITAM Rewards
      • AIP-2: Governance Vault on Fantom
      • AIP-3: Handling of Governance Vault’s Early Withdrawal Penalty
      • AIP-4.1: Handling of a recent bad debt on WaultSwap’s position
      • AIP-4.2: Solution to eliminate bad debt risks from remaining Waultswap positions
      • AIP-5: Interest Model Adjustment
      • AIP-6.1: Limiting Access to Automated Vault
      • AIP-6.2 Limiting Access to Automated Vault
      • AIP-7: Handling of a recent bad debt on Fantom Network
      • AIP-8.1: Increase AUSD utility by providing access to high-leveraged AVs
      • AIP-8.2: Increase AUSD utility by providing access to high-leveraged AVs
      • AIP-9: Deposit Liquidation Treasury Funds into Lending Pools while waiting to be used for buyback
      • AIP-10: Further optimizing the borrowing interest rate slope
      • AIP-11: Adjust Stability Fee for AUSD to help restore peg
      • AIP-12: Handling of bad debt from the recent stkBNB's depeg
      • AIP-13: Removing xALPACA requirement for accessing high-leveraged Automated Vaults
      • AIP-14: Close remaining LYF positions on stkBNB-BNB pool to avoid any potential future bad debt
      • AIP-15.1: Incentives for New Upcoming Products (Perp, AF2.0)
      • AIP-15.2: Distribution Method - Incentives for New Upcoming Products (Perp, AF2.0)
      • AIP-15.3: Incentives Amount for Perp - Incentives for New Upcoming Products (Perp)
      • AIP-15.4: Incentives Amount for AF2.0 - Incentives for New Upcoming Products (AF2.0)
      • AIP-15.5: Sources for Incentives - Incentives for New Upcoming Products (Perp, AF2.0)
      • AIP-16: Adjusting Slope3 max interest rate
      • AIP-17: Handling of extra ALPACA tokens from the AIP-15 incentives
      • AIP-18: Sunsetting Leveraged Yield Farming Support for MDEX pools
      • AIP-19: Implement Shielded Voting
      • AIP-20: Aligning AF1.0 lending performance fee structure with AF2.0
      • AIP-21.1: Adjusting bad debt repayment scheme from the stkBNB de-peg event
      • AIP-21.2: Adjusting bad debt repayment scheme from the stkBNB de-peg event
      • AIP-22: Paid Marketing Budget for Alperp and AF2.0
      • AIP-23: Sunsetting Leveraged Yield Farming Support for TUSD
      • AIP-24.1: New Governance Vault Implementation
      • AIP-24.2: New Governance Vault Implementation - Unlocking Period
      • AIP-24.3: New Governance Vault Implementation - Transferability
      • AIP-24.4: New Governance Vault Implementation - Early Withdrawal
      • AIP-24.5: New Governance Vault Implementation - Early Withdrawal Penalty Model
      • AIP-25: Migration from AF1.0 -> AF2.0
      • AIP-26: Transitioning the Governance Vault
      • AIP-27: Alpaca Insurance Plan Update
      • AIP-28: Updating Governance Voting Structure
      • AIP-29.1: Converting Remaining BUSD in AF1.0 lending into USDT
      • AIP-29.2: Charging conversion fees to the remaining BUSD depositors
      • AIP-29.3: Determining the conversion fees
      • AIP-30: New Product Proposal - Stablecoin
      • AIP-31.1 Handling of remaining assets in the AUSD’s stable swap module
      • AIP-31.2 Handling of remaining assets in the AUSD’s stable swap module
      • AIP-32: Distribution Plan to Lenders of Stablecoins from THE Liquidation
    • ⏭️Step-by-Step Guide
      • Lock ALPACA in Governance Vault
      • Lock more ALPACA/Extend Lock Time
      • Claim Rewards from Governance Vault
      • Add Custom tokens to your MetaMask
      • Vote on Alpaca Improvement Proposal (AIP)
      • Early Withdraw ALPACA from Governance Vault
      • Withdraw ALPACA from FANTOM Governance Vault on BNB Chain
      • Withdraw xALPACA from old Governance Vault
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    • 👩‍🏫Alpaca Academy
      • Lesson 0 - How to Buy Alpaca and Start Earning Yields for Beginners(Lending+Staking)
      • Lesson 1 - Alpaca Finance’s Unique Use-Case — Shorting at a Profit
      • Lesson 2 - Introduction to Hedging with Double-Sided Borrowing
      • Lesson 3 - Liquidation Risk in Leveraged Yield Farming
      • Lesson 4 - Open/Close Positions With 0 Swap Fees
      • Lesson 5 - The Truth About Impermanent Loss and Common Misunderstandings
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    • 📚General Knowledge Articles
      • Navigating the Economic and Safety Landscape of DeFi
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      • Understanding the Basics of Decentralized Finance (DeFi)
      • Advanced Ways of Decentralized Trading with Alpaca Finance’s Perpetual Futures Exchange
      • Maximize Your Returns with Automated Vaults and Leveraged Yield Farming on Alpaca Finance
      • What does 'buy and hold' or HODL mean in investing?
      • What is DeFi Governance and why is it important?
      • What exactly are DeFi Money Markets?
      • What is yield farming and how does it differ from traditional investing?
      • What exactly does 'unlocking liquidity from long-term holdings' mean?
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  • Past Products
    • 💵AUSD (Old)
      • 💵Introduction to AUSD
      • 💹How to Participate
      • 💦AUSD Liquidation
      • 〰️AUSD Price Stability Module
      • ❗Risks
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        • Open an AUSD Position
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      • 📔AUSD Parameters
    • 🗳️Governance Vault (Old)
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    • 🌿Grazing Range (Old)
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  • 🎁Rewards for Participants
  • 1. Grazing Range Pool Rewards
  • 2. Platform Revenue Sharing
  • 3. Governance Voting Power
  • ⏰Rewards Distribution Mechanism

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  1. Past Products

Governance Vault (Old)

Welcome to xALPACA!

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Last updated 1 year ago

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Alpaca's governance vault is a fork of Curve DAO’s governance. We believe this is one of the best models to align the incentives of the platform with loyal token holders.

You’ll be able to choose how long you want to lock up your ALPACA tokens, from a minimum of 1 week to a maximum of 1 year. In return, you will receive xALPACA tokens which will represent your share in the governance rewards pool as well as your voting power for the upcoming governance functions in Q1 2022.

The amount of xALPACA you’ll receive will be calculated based on the amount of ALPACA deposited and the remaining lock duration, where 1 ALPACA locked for one year = 1 xALPACA. Your xALPACA balance will decrease linearly over time and will reach 0 when it’s unlocked.

The longer you lock up for, the more xALPACA you will receive, which translates into a higher multiple on your rewards APY and governance voting power.

Example 1:

  • Alice locked 100 ALPACA for 52 weeks and received 100 xALPACA

  • 26 weeks have passed. Alice’s xALPACA balance became 50

Example 2:

  • John locked 100 ALPACA for 26 weeks, and received 50 xALPACA

  • Feeling like a llama, John then decided he’d prefer to get a higher multiple on his rewards so he extended his lockup from 26 to 52 weeks, and received an additional 50 xALPACA, bringing his total balance to 100 xALPACA

Actual xALPACA balance might differ slightly due to rounding off number of days in a year. However, the calculation is the same for all users.

💡 Pro tips

- To ensure you always get the maximum APY on your governance rewards, you can extend your lockup period (to the max. 52 weeks) every week before the snapshot is taken

- You can add ALPACA to your locked position or extend the locked duration at any time

- You can only have one locked position for each wallet address. If you wish to have multiple locked positions with different durations, you can use multiple wallets

- Unlock also happens weekly at the same time as rewards distribution, at approx. 00:01 every Thursday

🎁Rewards for Participants

By locking up your ALPACA, you will be entitled to receive ALL the following rewards

1. Grazing Range Pool Rewards

Governance vault stakers earn token rewards from all future Grazing Range pools. Moreover, you do not have to choose which pool to stake in. If there are multiple pools running concurrently, you are eligible to receive rewards from all of them! The yields stack up for you. To see the list of Grazing Range pools for governance vault stakers, please visit here.

2. Platform Revenue Sharing

To align closer to market rates, and give more benefits to ALPACA holders, as of Dec 23, 2021, we are adjusting the leveraged yield farming performance fee to 9% (on yield farming rewards portion only). Of this, 5% will go to Protocol APR for the ALPACA stakers in the governance vault (as an ALPACA buyback).

This is a new revenue stream for ALPACA stakers that brings in an additional ~2.6Mn/year or ~$50k/week (based on metrics at time of launch) as rewards to them, adding a consistent income channel on top of the existing Protocol APR, Grazing Range rewards, and long-term deflationary benefits through buyback & burn that ALPACA holders enjoy.

3. Governance Voting Power

More xALPACA = more votes for governance proposals.

⏰Rewards Distribution Mechanism

Due to the smart contract structure, rewards are distributed on a weekly basis.

Each week, we take a snapshot of users’ xALPACA balances at 23:59 UTC Wednesday. This balance is then used to calculate each user’s share of the rewards accrued in the following week. Rewards then become available to claim every following Thursday.

Let’s look at an example to further clarify this concept.

  • The first snapshot is at 23:59 UTC on Wednesday the 22nd of December.

  • All the users that lock their ALPACA in the governance vault before 23:59 UTC on the 22nd of December become eligible for the rewards that accrue from 23rd December to 30th December.

  • Rewards for that week then become available to claim after 00:01 UTC on the 30th of December.

💡 Pro tips

Make sure you make any adjustments to your locked positions(such as extending lockup for a higher multiplier or adding more ALPACA) by 11.59PM UTC Wednesday to get the max allocation from the following week’s rewards.

🗳️
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