- Alpaca Finance is a DeFi platform that has decided to step into the NFT space through Galxe.
- It has launched more than 100 NFT campaigns on the Galxe platform.
The DeFi space has seen several expeditions since the launch of Ethereum with numerous companies setting their foot on its fresh soil. All wish to leave an impacting footprint on this unexplored earth and attract customers and participants. No wonder companies are coming up with new features and advancements in the existing ones to win this competitive race.
Alpaca Finance, a DeFi company, provides users with a lending and savings platform where they can participate in leveraged yield farming. The project was launched on the Binance (BNB) chain and is soon to be launched on the Fantom chain as well. The blue-chip project boasts the largest user base with more than $1 Billion in TVL.
A popular practice among token and digital asset holders to earn returns, rather than just hold, is to engage in yield farming. Holders can lend their tokens to platforms and projects which pay these lenders a stable annual percentage yield (APY). In addition, to yield farming, Alpaca Finance also allows leveraged yield farming with 5X leverages. This means a user with just $10,000 could borrow $50,000 (5X leverage) and farm it to earn 6X yield returns.
The fair launch project entered with no pre-mine, pre-sale, and no investors with 87% of the total supply going to platform participants and less than 9% to the team. The ALPACA is the native token over the platform and is designed to be a deflationary token with more tokens burning than mint. In 2021, the project won Binance’s Most Valuable Builder Award and shaped itself as one of the respected brands over BNB.
The NFT side of Alpaca
Galxe, originally launched as Project Galaxy, is the provider of the largest credential data network in Web3. Credential data is a database of all the evidence of a user’s actions over the web. In web2, this data was stored in private databases with access given only to the government, financial institutions, or regulatory bodies. The common people had no access to this class of data.
Galxe built an open and decentralized project with this data available to all the developers helping them to build better-improved projects for the right communities. Their products include Galxe ID, universal identity incorporating Metaverse DID, and Galxe Passport for storing data anonymously and securely. This broadens Galxe’s use cases to customized governance, gated communities, and NFT loyalty programs.
Alpaca Finance became the first partner of Galxe and launched its first-ever NFT on its platform. The NFT was a series of animated shorts which were titled, “Little AI and the Magical Alpaca Farm: Episode 1”. Little AI is the mascot of Alpaca Finance and the NFT follows its journey where he reveals the truths about himself, the world, and how he discovered where he belongs.
The series is monumental in the NFT space because of its unique storytelling approach and will be the starting point for the development of future NFTs which will continue the story. This campaign, in the future, will be called the ‘Origin of Growth of Alpaca’ and is aimed to become a genuine collector’s item.
Any team launching NFTs looks to go in either of two directions-, meme, and utility. Several meme collections such as BAYC and CryptoPunks have been popular and closely connected to people., However, they are not practical long projects as the community dies, e. Especially in a bear market season.
Alpaca is focused on the utility strategy of NFTs as this utility itself becomes the cause for increasing the value and demand of NFTs. The best example is the Uniswap V3 NFTs which although virtually invisible are held by several users. In the future, the focus will be on developing gaming NFTs and integrating them with the DeFi platform.
Final Thoughts
Alpaca has started its march in the aggressive territory of NFTs with a focus on utility and gaming NFTs, although they will also work on more memes and enrich their community. Galxe transforms NFTs from just collectibles to identities providing more liberty to developers and communities.
