We are seeing large amounts of assets being withdrawn at specific times.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?