February 2024 Recap

Alpaca Finance celebrated a monumental milestone this February, marking three years of innovation, growth, and community-driven success. As we reflect on this special month, we are not only commemorating our journey but also anticipating the onset of an upcoming bull market that promises new opportunities and challenges. Looking ahead, we are filled with excitement for the next step in Alpaca Finance’s journey.

To commemorate the third anniversary, the exclusive Alpaca’s 3-Year Anniversary Special NFT was given to all users staking any amount of ALPACA in Governance Vault by March 4th, 2024. You can check your eligibility here.

This month, we published four Institutional Newsletters where you can read the summary of major headlines in the crypto market related to regulation, products, and fundraising. We publish these newsletters every week. You can check out this month’s editions here: Edition 70, Edition 71, Edition 72, and Edition 73.

Read below for more details of our developments this month.

🌾 Lending Pools

As per AIP-29, the BUSD migration is now completed.

• Users who had BUSD deposited may now claim their assets, which is now converted into USDT here: https://app.alpacafinance.org/lend/BUSD/claimV2
• USDT has been successfully deployed into AF2.0 lending
• In total, $179.3k USDT (2%) was collected as a fee and distributed to protocol revenues as per the Governance vote.

🏦 Automated Vaults

In February, we expanded the capacity of the following Automated Vault:

• BNB Savings Vault (BNB-USDT PCS): 1.5 Mn -> $2.0 Mn.

Due to low demand and underlying yields, we decided to sunset the BNB Savings Vault (BTCB-BNB PCS). As such, all assets in the vaults have been converted into BNB. Investors in the vault can withdraw their assets at any time here.

This month, the performance of our Automated Vaults was very strong with the highest 1-month Return on ETH Savings (ETH-BTCB PCS) vault of 85.16% APY.

We will continue to monitor the performance of the vaults and add additional Automated Vaults as appropriate. You can also check our AVv3 DUNE Dashboard for all the historical stats and key metrics of the product here.

Lunar New Year 2024

Happy Lunar New Year 2024!, the exclusive Happy Lunar New Year 2024 NFT was given to all users investing any amount in any of the Automated Vaults V3 by February 13th, 2024. You can check your eligibility here.

💎 AF 2.0

In February, Alpaca Finance 2.0’s Money Market generated ~$25k in interest revenue, reaching a total cumulative revenue of ~$353k.

You can monitor the AF2.0 Money Market through our Dune page here.

📈 Perpetual Futures Exchange

In February, Alperp generated ~$25k in protocol revenue with a trading volume of over $13 million, reaching a cumulative trading volume of $536 million since launch.

You can always check our in-house Stats page to see Alperp’s performance and can also download the data here.

🔥 ALPACA Buyback&Burn

Each week, we share our revenue and ALPACA burn statistics on X (previously Twitter). In February, 203,552 ALPACA (~$37,800) was burned over 4 weeks, or an average of 50,888 ALPACA per week. The total cumulative burn is now ~33.5 million ALPACA (17.85% of total supply).

ALPACA has been deflationary for 105 of the last 112 weeks. As per the ALPACA emissions schedule, the ALPACA token is now guaranteed to be fully deflationary as ALPACA emissions & rewards are now officially finished. We added extensive details on burn and various sources of burn on our Docs here. On top of that, we hope to again refer our readers to this article by a community member, explaining ALPACA’s deflationary nature and how it will lead to a natural rise of the ALPACA token’s price over time.

🗽 Alpaca Governance

Any user can stake ALPACA in the Governance Vault to (1)earn a share of our platform’s revenue, (2)get Grazing Range rewards, and (3)receive xALPACA to vote on Alpaca Improvement Proposals (AIPs).

In total, 24.8% of circulating ALPACA has been locked, and we have paid over >$4.0 Mn to ALPACA governance stakers. Read all about Alpaca Governance in our Part 1 and Part 2 Medium articles or visit our docs’ Governance section.

Our Discord has a private channel for xALPACA holders where governance members can discuss topics and discover/share alpha. There is a bot automating membership and the minimum required to gain entry is 100 xALPACA in a wallet. From time to time, we do special airdrops from partners (i.e. NFTs) in this channel to xALPACA holders and also Alpies holders (in their respective private channels). You can also bring up any Governance topics for discussion in our Forum.

Alpaca Improvement Proposals (AIPs):

• AIP-29.1 voting has successfully passed. The community voted to implement the conversion as proposed.
• AIP-29.2 voting has successfully passed. The community voted to charge conversion fees.
• AIP-29.3 voting has successfully passed. The community voted to charge 2% conversion fees.

For those who participated in voting, the NFT for AIP-29 is now available to claim on Galxe. Visit our Governance Forum to read about, discuss, and vote on these AIPs.

📰 Other News

In February, PancakeSwap, the top DEX on BNB chain, integrated our Automated Vaults into its Position Manager — https://twitter.com/PancakeSwap/status/1753040778115662055

ALPACA was listed on Cryptology exchange — https://twitter.com/CryptologyCEX/status/1763233671106974170

Feedback

We greatly value our users’ feedback, which you can give at: https://docs.google.com/forms/d/1QGY4wJUvYdYWe6TQn460m0A7H07xMUcBGEnU-pUXyg4/viewform?ts=61e8ce4e&edit_requested=true

Next Steps

We will continue to build. The upcoming updates that you can look forward to include news on our Alpaca Gaming and Alpaca Finance 2.0 products.

We announce updates on our Twitter first, so follow us to be the first to know!