Alpaca Finance is a leveraged yield farming protocol designed to offer the highest capital efficiency through platform-controlled undercollateralized loans and an innovative suite of products. Last summer, the leading lending and savings platform on BNB Chain integrated Chainlink as its primary oracle solution to boost the security of its growing TVL.
Alpaca’s CMO, known as Samsara Notallama, told Chainlink Today that the protocol’s previous in-house oracle “was effective but drained our technical resources and was not nearly as robust as Chainlink.” He said Chainlink’s easily integrated, blockchain-agnostic Price Feeds allow Alpaca’s team to focus on both building new products that generate more value for the platform’s users and expanding to additional chains.
“If you’re a DeFi builder, integrating Chainlink is like installing internet in your office,” Notallama said. “It just makes everything else work.”
Last week, Alpaca announced its expanded integration of Chainlink Price Feeds on the Fantom blockchain to “ensure the maximum safety” of its new market-neutral Automated Vaults, which “were met with tremendous demand” and hit their $100M capacity just weeks after launch.
“Fantom has a lot of new earning opportunities for Alpaca users,” Notallama told Chainlink Today. “There are a number of lending and leveraged farming options with DEXs like SpookySwap. All these products integrate Chainlink.”
Alpaca’s Automated Vaults allow users to farm yield with little to no market exposure using market-neutral strategies. Chainlink Price Feeds are vital for accurately calculating portfolio rebalances needed to continuously maintain zero market exposure. Notallama described Alpaca’s Automated Vaults as “pretty popular” and attributed Alpaca’s fast-growing Fantom TVL to their launch.
He said Alpaca’s team is working on an institutional cross-chain platform while expanding to additional blockchains – a process that’s simplified by Chainlink’s blockchain-agnostic oracle architecture.
“Chainlink’s oracles make it easy for us to go multi-chain and integrate with various other protocols. They’re improving the ease of composability, which is important for helping DeFi grow.”