Create 8x BUSDBNB Market Neutral AV

Community Discussion & Proposal
1

Simple Summary:
Create 8x BUSDBNB Market Neutral AV

Abstract:

Motivation:
Now Alpaca only has 8x USDTBNB Market Neetral AV fund. For some investors who try to avoid USDT, it will be good to have an 8x BUSDBNB fund. For Alpaca, it’s a demand unmet with potential.

Rationale:
We have 48M BUSD in supply, the utiliatzion is 41%. In comparison, 37M USDT in supply with a utilizaion of 72%. So enough room for BUSD fund.

Implementation:
I guess the implementation will be rather easy.

References:

3 Likes
2

I second that. Whether you are a hardcore USDT fud monkey or someone who just tries to spread the risk around, an 8x BUSDBNB will be very nice to have.

3

I agree. It seems like 8x is preferred over 3x across the board.

4

Thanks for the suggestion.

I think this makes sense and is quite straight forward to implement. No need to go through a vote. We should be able to add the vault soon.

3 Likes
5

@huacayachief would the same be applicable to a 8X neutral CAKEBUSD vault?

6

The challenge with doing AV on CAKE is the availability and stability of the CAKE lending supply.

1.) The utilization for this pool is always high (80% - 90%) making it difficult to add a large borrowing demand.

2.) During past IFOs, we have seen significant withdrawn from our CAKE lending pools, spiking utilization and borrowing interest rates - which is not desirable for AVs.

2 Likes
7

Given the recent regulatory development on BUSD, we are holding off launching the new BUSD-based market neutral vault at the moment.

2 Likes