Alpaca Finance is a leveraged-yield farming protocol built on the Binance Smart Chain. It allows yield farmers to earn higher return by opening leveraged positions.

In Alpaca Finance, the source of your yield will depend on how you participate in the protocol:

As a lender, your yield comes from:

• Interest paid by borrowers to open leveraged yield farming positions (Interest rate is based on pool utilization).
• Incentive rewards paid in ALPACA.

As a yield farmer, your yield comes from:

• Underlying trading fee of the pool – i.e. trading fee of the PancakeSwap pool.
• Incentive rewards of the pool, if applicable – i.e. Cake token.
• Incentive rewards paid in ALPACA (only if you have a leveraged position).

ALPACA token is a governance token of the Alpaca Finance platform. It will also capture the economic benefits of the protocol.