1) Here’s a little thread explaining the current fundamentals of the $ALPACA token
91.8% of all $ALPACA tokens that will ever be in existence are already in circulation (*87.9% with unminted warchest funds)
Why is that important?
#DEFI #Yieldfarming #BSC #bnb #binance

2) It’s because it means holders of $ALPACA will not suffer serious inflation. Many tokens have 100%+ inflation/year, which means those holders’ tokens will drop 50%+ in price every year(at neutral growth)
Meanwhile $ALPACA is already deflationary, with buyback&burn > emissions

3) Buyback&burn means protocol revenue that is coming in as BUSD, BNB and other tokens is used every week to buy $ALPACA, which is then burned, meaning it’s sent permanently out of circulation so it can never be accessed or sold by anyone!
More on that: #how-does-token-burning-work-since-alpaca-has-a-capped-supply-doesnt-perpetual-burning-mean-the-alpac" target="_blank" rel="noopener" onclick="event.stopPropagation()">docs.alpacafinance.org

4) $ALPACA price was in a downtrend for some time mainly due to 2 factors:
A. High early inflation
B. Some DeFi users hopping from BSC->new chains for token incentives
Factor A has reversed itself to bullish. As for B, if users wanted to leave BSC, by now, they already did so!

5) The absence/reversal of the above 2 factors implies much less selling pressure on $ALPACA. Since it’s now deflationary, just holding $ALPACA guarantees a rise in value(at neutral growth, which is not even considering new products and additional potential from cross-chain)

6) Then, you can even deposit your $ALPACA in governance for up to 58% APY without IL (lockup vault). This APY is reliable because most is Protocol APR which has been stable for 6 months
gov.alpacafinance.org
In other words, this is like a super high-yield savings account!