Open the alpaca 3 times loan

1、Binance has already opened short selling. Compared with the exchange volume and on-chain trading volume, the opening of short selling on Alpaca will not unduly affect the market.

2、If open shorting increases the volatility of alpaca, it will actually attract more people to trade alpaca, which not only increases the popularity of alpaca, and these extra trading volumes will also provide more profits for alpaca-busd lp .

3、Going short will lower the price in the short term, but in the long run, borrowing alpaca to go short is actually bullish, because he needs to pay interest continuously, and the interest is bought into alpaca, that is to say, he must keep buying alpaca, and when he closes the short, it is Those who need to buy alpaca to repay the loan, this buying and selling actually has no effect on the price in the long run, but instead pays the interest to buy the alpaca.

4、3x borrowing alpaca can attract more people to farm, provide better depth and liquidity for alpaca, and provide higher interest for alpaca without lock-up.

5、Even if the price falls in the short term, more alpaca can be repurchased and burned. The current price of alpaca has little effect on the protocol. Most token holders are long-term investors. What we value is the next bull market, and the current price fluctuations Don’t care so much, opening 3x now will pave the way for the next bull market, and get rich together in the next bull market.








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I think this is a good suggestion.

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Thanks for your suggestion. It’s basically the same stuff some people said a year ago when we limited borrowing ALPACA to 2x. However, I disagree now as I did then. I’ll address your points one by one.

  1. Many people use DeFi instead of Binance because Binance has KYC and/or is centralized. I’m not aware of an on-chain option to short ALPACA.

  2. Volatility may attract short-term traders to provide trading fees on CEXes which wouldn’t bring any benefits to us. These traders are not investors. What volatility will do is detract serious investors.

  3. If they want to farm ALPACA, they can open a long position and pay interest as you said, or a neutral position. If someone is opening a short position, they are betting on and reinforcing the dropping price of ALPACA. I don’t see a good enough reason to allow this. In the view of market participants, it’s like helping your enemy to damage you. Saying they will eventually close positions isn’t useful because they can push down the price and force liquidations on long positions. This could create opportunities for bad actors.

  4. It would only attract shorters to farm. The added interest would be trivial relative to the potential effect on price. If you disagree, I’d like to see numbers proving that.

  5. I don’t agree that the current price of ALPACA has little effect, implying we shouldn’t care about it.