Alpaca City aims to create a more accessible DeFi ecosystem on Ethereum and Binance Smart Chain. The platform uses cute Alpaca non-fungible tokens (NFTs) as an integral part of the platform’s yield farming operation. Which is powered by an ALPA token.
What is Alpaca City?
Alpaca City is a DeFi protocol where users can earn rewards in ALPA tokens for providing liquidity. However, unlike your standard farming platform, your yield farming is not determined solely by the number of crypto assets you deposit. The platform also enables you to mint rare Alpacas, which are all unique NFTs with their genetic traits. Furthermore, each Alpaca has a different Energy level which decides how much yield they can generate. Essentially, the idea is that your Alpaca herd is managing your funds on the farm.
Currently, you can farm ALPA by staking your Alpaca NFTs or by providing liquidity to the ALPA/ETH pool on Uniswap. You can also stake your ALPA tokens or recycle your Alpaca NFT (burn) to earn the protocol’s second token WOOL. The second token does not really hold any value but in the future it will be possible to buy limited edition Alpacas using WOOL token.
Breeding… baby Alpacas have a higher energy level. Therefore, to ensure your farming operation stays sustainable long term you will need to grow your herd.
When breeding users have to pay a fee in ALPA, the fee varies on the generation of the Alpacas.
- Alpaca City burns 90% of any fees collected by the protocol. As a result, this slows emissions as ALPA is an inflationary token. The remaining 10% goes to the development team to ensure long term operations.
Looking to the future
The platform is launching on Binance Smart Chain in early December. Excitingly, this will make managing your Alpaca NFTs much cheaper given lower network fees. The team is planning to release a Boutique where you can buy collectibles to equip on your Alpacas to increase their energy levels. Additionally, their roadmap includes Stablecoin asset management which would give the protocol a DeFi vault product. New features will help the protocol collect more fees and burn higher amounts of ALPA tokens.
Trading the Alpaca NFTs on OpenSea is already proving to be very popular, with over 820 owners. Given that the Alpacas’ have 12 different trait groups, it seems possible there could be some further mini blockchain games that use your Alpacas in the future?