Cook Finance Integrates Alpaca Finance

3 min readMar 24, 2022

At COOK Finance, we are committed to expanding the frontiers of passive income opportunities for our users. And in this regard, we have made yet another giant step. Today, we are delighted to announce our partnership with the ALPACA FINANCE team.

This partnership will allow COOK to incorporate the leveraged yield-farming protocols of Alpaca, thereby helping COOK holders improve their capital efficiency without taking on additional risk.

About Alpaca Finance

Alpaca Finance is a fair-launch leveraged yield farming protocol hosted on the BNB Chain and Fantom. It is currently the largest lending protocol that allows leveraged yield farming on the BNB Chain.

The platform has established itself as a key enabler for the entire DeFi ecosystem, Alpaca amplifies the liquidity layer of integrated exchanges, improving their capital efficiency by connecting LP borrowers and lenders. It’s through this empowering function that Alpaca has become a fundamental building block within DeFi, helping bring the power of finance to each and every person’s fingertips.

Primarily, Alpaca offers fund providers (lenders) an avenue to earn safe and stable yields. The platform also gives borrowers an opportunity to expand their earning capacity by providing easy access to under-collateralized loans for leveraged yield-farming positions, thereby vastly multiplying their farming principals and potential profits.‌

Alpaca Finance Key Features:

Alpaca Finance is the largest lending protocol allowing leveraged yield farming on BNB Chain. Some of their key services include:

  • Under-collateralized Loans: Enables users to obtain undercollateralized loans on their crypto assets.
  • Leveraged Trading: By providing under-collateralized loans, the Alpaca protocol allows users to open leveraged positions, potentially leading to higher yields on much less capital.
  • Connecting Lenders and Borrowers: Offers a smooth and secure platform for fund providers (lenders) to connect with borrowers.
  • Efficient Transactions: Alpaca enables sending transactions on BNB Chain, which is incredibly efficient and will cost users much less gas than on other chains, thereby maximizing net-yields.

Synergy Between Cook Finance and Alpaca Finance

As DeFi continues to grow in popularity, the use cases of Cryptocurrencies have now expanded beyond facilitating borderless transactions and acting as a store of value. Many users on the blockchain now turn to DeFi to seek passive income opportunities to replace the inflation-ridden systems of fixed-deposit savings and loans of the legacy banking system.

Yield farming is one such investment strategy in DeFi. It involves lending or staking your cryptocurrency tokens in exchange of rewards in form of fees and interest. This is somewhat similar to earning interest from a bank account.

As a leading niche-player in the yield-farming and leveraged trading space, Alpaca is poised to make a significant difference in the way that COOK holders generate income with their yield-farming index assets.

Primarily, Alpaca is set to amplify the liquidity layer of the integrated Cook Finance platform, thereby improving capital efficiency of index selectors. With this empowering function, Alpaca could quickly become a fundamental feature within the Cook Finance ecosystem.

Our aim at Cook Finance is to create a safe, and secure platform for index selectors to minimize risk while generating maximum passive income. And By integrating Alpaca Finance, Cook Finance will now be able to help COOK holders generate yield for yield bearing indexes on BNB Chain.

About Cook Finance

Cook Finance is a transparent and flexible DeFi Index platform. This two sided platform is suited to a diverse range of users to make it easy to select from a menu of indexes across multiple chains. At the same time on the other side of the platform, index creators can utilize tools to create virtually any imaginable strategy and easily offer it up to the Cook community.