Offer Locked lending to stabilise borrowing rates

We are seeing large amounts of assets being withdrawn at specific times.
Mostly referring to BNB pool being depleted during Binance Launchpads for 5 days.
Binance Launchpads return 100-300% apr while Alpaca has an hard cap of 40% for borrowing hence we reach 100% utilisation, farming becomes unprofitable and investors starts closing positions.

Even though the funds are coming back and eventually investors re-open farming and vault positions this is nevertheless something we might want to contain a little.

The proposal is to give an option for “locking” the assets in lending (i.e. 1 week) offering an increased apy for staked VS flexible.
This would address some withdrawals pressure during the launchpads.

It would also be interesting to understand how this would play out with V2 given BNB borrowing rates during Launchpads are going to around 120% on Venus.
How will the borrowing funds outside Alpaca protocol play with this?

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Thank you for your suggestion.

Unprofitable farming, especially for AVs during a high utilization period is something that has been on the top of our mind.

In fact, we just released an article earlier detailing one solution to the issue. Product Update: Automated Vaults Improvements | by Huacayachief | Alpaca Finance | Apr, 2023 | Medium

We will explore the locked vault idea as a way to further stabilize the lending supply.