well if xAlpaca holders wont fill the automated vualts they would open them to public from what i understood
Very good that we were heard and that we now have a proposal, this is awesome!
I liked the idea of leaving the low leverage ones available for everyone while limiting the high leverage for us, xALPACA hodlers since every business around give more benefits the more the stakeholder is committed to it. I do have better privileges with my airline fidelity level than people that donât fly or buy from them as much as I do. This is logic busines behavior, we should adopt it for sure.
On the options for such recognition and benefits regarding the AV, I tend to prefer the linear one, because people can have whatever amount as they see fit for them without needing a specific amount of xALPACA.
I am understanding that the 2nd option means we would have a kind of a limit on how much one wallet can invest, been USD 100,000 that limit, correct? That is the same as have no limit since a whale can split the xALPACA and have multiple 100,000 deposits, but at least one would have to hold multiple 200,000 xALPACA balances as well. Good one too.
My total support for adding this specific use for our xALPACA tokens! Lets move forward!
Thx for the work! 
5 Likes
- Why donât you try the notification in place first so that more users who care about alpaca can grab it? This allows some holders to grab the fund.
- Is it really necessary to spend more than a month doing such a thing? If you open a $10B neutral fund in a month? Is it useless than developing this function?
- The neutral strategy has a certain capacity in a swap. Strategically, you should open a pool as soon as possible and then go to more chains. Xalpaca should care about long-term benefits. The more neutrally opens, the higher the agreement income will be.
Your words werenât expressed in a pleasant way but I think what you were trying to say is that we should focus on scaling up the max capacity faster rather than minmaxing the limited capacity.
To answer your question, the team is planning to scale up the speed by which we add additional capacity as well. We were planning to add 100Mn capacity next week until the PancakeSwap migration come up. But BNB Chain is currently limited in the foundational APYs we can get on the DEXes. So there is still a limit to scale on BNB Chain until the market changes. And cross-chain takes a lot more time.
So to address what you said, doing this initiative will not substantially slow the speed at which we scale adding additional capacity. And I also communicated to the team that I strongly support scaling as fast as possible.
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No I suggest keeping it private for xAlpaca users, as they are also bearing the biggest risk in locking up their Alpaca and showing faith in the protocol, as such should be rewarded fairly by also allowing them a certain allocation of the high leverage vaults.
If it was so easy to âgo to eth quicklyâ then many people would have launched projects and gone and done that already 
3 Likes
AV supply canât fill demand. In such a scenario, economics 101 says that you should raise the price of the product until supply meets demand. You can look at gating entry as raising the price of the 8x AV product.
And anyone can use 3x vaults because the demand on those is lower.
Yet, what you are suggesting does not increase protocol revenue and it does not increase the price of ALPACA tokens. Furthermore, itâs useless to invite more people who canât use the product because there is no available capacity. So I donât see any quantifiable benefit to that
Finally, I donât agree that there is a major experience gap that is going to limit newcomers. All the knowledge you need is available publicly and ALPACA can be bought by anyone. If anything you said is true, it applies to all DeFi products, and compared to other products, AV is much easier to use. Furthermore, they can all invest in 3x vaults.
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It will only be at the time of opening.
Penalty from early withdrawal would discourage / prevent anyone trying to game the system.
Also, once you have no xALPACA, you no longer can make investment in future vaults.
Thereâs a limit to the max capacity we can open on the DEXs on BNB Chain. So itâs not the case that weâre leaving money on the table by deaying a vault a week or something like that.
The code for AV isnât forkable because a lot of the calculation logic relies on the SDK for which the functions are testable but not public to fork
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I donât say itâs easy. I just think itâs a waste of a month and a half doing this function. Itâs better to notify in advance to see if it will be snapped up quickly, or you can open a user with xalpaca to buy an 8x pool to see if 25m will be quickly robbed. If neither of the above schemes can be quickly completed, then it makes no sense to do this function, just to satisfy some peopleâs laziness and the rapid rise of currency prices!
2 is already satisfied by allowing public to use 3x vaults which also filled up.
In fact, 8x has by far too much demand, and 3x has more demand than supply but itâs not an overwhelming amount. By shifting some of that demand from 8x to 3x by gating 8x to ALPACA holders, we can more efficiently distribute the demand across all vaults
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I donât know where you got a month and a half from. The post says 2-3 weeks and this will be only one of the teams working on it.
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Itâs true that if that happened, we would look at what to change to fill the vaults, including opening them to the public again.
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There is already too much demand. So more demand doesnât currently add any value to this product.
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As I replied to the other post, I donât know where you got more than a month from, thatâs inaccurate.
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Thatâs our strategy which weâre following but itâs easier said than done.
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How about just adjusting the threshold, we can release public of up to 50mn, with the rest being gated just for xAlpaca holders.
I do think that we should give public a bit more allocation before closing it off for private only.
Also giving it in tiers rather than linear is more favourable as it incentivise more locking up as well to reach the next tier.
I didnât understand that point.
Also would it be possible to add a limit counting funds invested in all AVs?
In that way, everytime a new AV is released you would need to lock more alpaca instead of using the existing locked ones.
If that was possible we could increase the reduce the xAlpaca general requirement but at least we would avoid whales investing huge amounts on each AV that opens with just one lock.
but linear is fair to all, which i think alpaca as protocol is leaning forward with its fair launch. It is also straight forwards and tiers might be confusing for newcomers or very limiting for poorer population
Public can already access 3x.
We donât have a lack of demand on 8x, so I donât see the justification for catering to the public so much. It seems to me like it would be unwise to overly appeal to outsiders who donât own any ALPACA and are just looking to arbitrage profits on our products. These are users who farm and dump tokens and donât actually invest in Alpaca or DeFi in general.
If they want max profit, get skin in the game and buy some ALPACA. Otherwise, we donât owe them anything. And this proposal is clearly good for all ALPACA holders. All ALPACA holders should be woolish on this .
6 Likes
Also part of the AV gains will come back to gov vault stakers as revenue 
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Fair enough, but since this came in so sudden, most people would be shocked to know that the next 8x vault would have so much restriction and most people already have funds ready today.
I would suggest releasing 1 last 8x 25m limit to the public before we paused it to cater for the xAlpaca users. This is to please our existing users that are waiting for it. Unused funds can be used to buy alpaca and let them plan to maximise their returns on the 8x private AV.
Or in another words: let them taste it once more like a drug and they will come back wanting more 
2 Likes