Orbs, the native currency of the Orbs network, is gaining exciting momentum.
The token was added to the PancakeSwap at the end of April 2021. The protocol launched the Orbs syrup pool as one of the most liquid Orbs pools on any decentralized exchange. Subsequently, Beefy Finance added Orbs to their vaults as well. Now, it’s Alpaca Finance’s turn.
Alpaca Includes Orbs
Alpaca Finance, one of the most innovative DeFi projects on the Binance Smart Chain, just went live with its Orbs pool. In this campaign by Alpaca, one of the largest lending protocols allowing leveraged yield farming on BSC, Orbs holders will get the opportunity to increase their yields by using Alpaca’s Grazing Range and Leveraged Farming features.
The Leveraged Yield Farming Opportunity
With the introduction of Orbs in Alpaca, users of the DeFi project will get the opportunity to open leveraged yield farming positions up to 2X on PancakeSwap’s ORBS-BUSD pool. The pool currently offers an excitingly high return of 120% APR in CAKE tokens. Moreover, the yield farmers in the pool get the opportunity to receive ALPACA tokens as rewards. These rewards come as extra to the leveraged yield farming rewards and trading fees from Pancake.
The Benefits of Grazing Grounds
The Grazing Grounds feature of Alpaca allows the user to utilize their Alpaca token rewards further to earn Orbs tokens. These Orbs tokens will be distributed over a four-week schedule. The highest-earning opportunity comes in the first week, with the approximate rewards going as high as $58,500. Week 2 will see a rewards opportunity of $32,500, followed by $24,700 on week 3 and $14,300 on week 4.
Leveraged Yield Farming: A Tale of Risks and Rewards
Leveraged yield farming allows a user to borrow assets to open a larger position than they hold. The borrowers need to pay interest. To ensure that the borrower would ultimately be able to pay back the loan, the protocol keeps funds as collateral from the user’s account. The collateral grows with yields accumulating minus the borrowing interest. However, the collateral should always stay above the borrowed amount. In failing to do so, the protocol would close the user’s position and liquidate the collateral. The risk in leveraged yield farming comes as the possibility of liquidation in a market experiencing high volatility and extreme price movements.
Despite these odds, the leading market protocols looking forward to including Orbs in their vaults is testimony to Orbs’ robust presence in the DeFi space.