Boosted Alpaca-BUSD farm

Proposal for boosted 4.5x Alpaca-BUSD farm with borrow BUSD 4.5 and Alpaca 2
It would allow Alpies holders to go leveraged long Alpaca and provide more liquidity to the pool

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Conceptually makes sense to me! I was surprised not to see this in the first place

I think that to allow such high leverage and low liquidation threshold we pool would need more liquidity for safety purposes.
That why increased leverage is not in all the pools.

I feel like liquidity is still too small for that and can increasing risk of on-chain cascading liquidation. But if Iā€™m not mistaken, staking alpie still reduces liquidation price for this pool.

4.5x leverage is too high for the current liquidity in the ALPACA-BUSD pool. Also ALPACA price is too volatile.

You can see that boosted leverage is currently only granted to pools with enough liquidity. BNB, BTCB, ETH and CAKE

Liquidation threshold is only adjusted for the boosted pools. For ALPACA-BUSD, the liquidation threshold will be the same whether you stake Alpies NFT or not.

You can check the details here: Boosted Leverage - Alpaca Finance


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