In an exciting development for Orbs holders, Alpaca Finance, one of the most innovative DeFi projects on the Binance Smart Chain, has added the currency to its Finance Vaults. The pool will go live on July 13th, 2021.
Alpaca Finance is one of the largest lending protocols to allow leveraged yield farming on BSC. This inclusion will allow Orbs holders to increase their yields by leveraging Alpaca’s Grazing Range and Leveraged Farming features.
The Scope of Risk and Return in Leveraged Yield Farming
In leveraged yield farming, the lending Protocol, Alpaca, in this case, needs to be sure of the user’s ability to repay the loan. Like any other loan, this one too carries a borrowing interest.
The user adds funds as collateral that grows as it keeps accumulating yields over the borrowing interest. The user always needs to maintain the collateral level above the borrowed amount. Otherwise, the protocol will close the user’s position to pay back its lenders. This process is called liquidation. In yield farming, there is always the risk of liquidation, especially during high market volatility and extreme price movements and there is always the chance of earning greater returns with lesser funds.
As this inclusion of Orbs in Alapace Finance comes into effect, the users will be able to open leveraged yield farming positions up to 2.0x on PancakeSwap’s ORBS-BUSD pair. The pair currently offers a yield of nearly 120% APR in CAKE rewards. Moreover, the leveraged yield farmers in the ORBS-BUSD pool receive bonus Alpaca tokens as rewards.
The user can further leverage these Alpaca tokens in the Alpaca Grazing grounds to earn more ORBS tokens, to be distributed over a schedule of four weeks.
For the first week, the combined value of these rewards may go up to as high as US$58,500. After that, it will go down each subsequent week, reaching $14,300 on week 4.
Orbs: a Hit Among the Protocols
After launching the token on its protocol at the end of April 2021, the protocol PancakeSwap has launched the Orbs syrup pool, one the most liquid on any DEX. In addition, beef Finance and Alpaca Finance have also added these assets to their vaults. While it increases Orbs’ on-chain activity on BSC, such back-to-back integration of the asset shows the confidence of the protocols in the Orbs project. Moreover, it augments Orbs’ position as a public blockchain infrastructure to bring digital trust at scale.