
Collaboration between Neptune Mutual and SushiSwap
Explore Neptune Mutual's ongoing collaboration with SushiSwap offering several benefits.
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After much deliberation and careful thought Neptune Mutual decided to close the cover marketplaces.
After much deliberation and careful thought Neptune Mutual decided to close the cover marketplaces. Below the reasons for the decision as well as what it means for the community.
The marketplaces will be closed using an emergency withdrawal process whereby the liquidity provided to cover pools by LPs will be returned to the wallet addresses from which the liquidity was supplied. In addition to protecting cover pool LPs, there will also be refunds to all cover policy purchasers with an existing and valid policy who have paid over 10 USD in policy fees in one transaction.
For veNPM holders, please fill out this form to receive a refund for your veNPM to NPM conversion penalty.
From the end of June there will no longer be NPM emission incentives for LPs i.e. Epoch 3 of the liquidity gauge emissions will be canceled.
Unused funds raised from financial backers will be returned to those backers; this includes DEX liquidity that has now been removed from SushiSwap and Uniswap. A small amount of liquidity on SushiSwap Arbitrum has been left to enable a minimum amount of NPM trading.
The protocol will be open sourced, and become a true public good. Enabling the community to fork the code developed by the Neptune Mutual team such that others might use the existing resources to further our mission to make the blockchain space better protected against smart contracts and other risks.
There are numerous factors that have led to this difficult decision, some of which are external factors which are uncontrollable or unforeseeable. A few factors summarized below:
“Given Neptune Mutual’s Tier 1 backers, why have you not listed on a top CEX?”
This is perhaps one of the most frequently asked questions. In short, the answer is that for a variety of reasons Neptune Mutual was not able to achieve the diverse set of performance metrics (community size and engagement, marketplace user activity, DEX 24 hour trading volume, TVL growth etc.) required to list on top tier CEX. The CEXs that are prepared to list NPM token do not have the depth of liquidity or breadth of user-base to offer good prospects for NPM tokenholders.
The above point invariably leads to the question
“Why has Neptune Mutual not achieved strong growth?”
It is tempting to take a shortcut to answer this question by pointing a finger at one specific factor, but the reality is that there are many contributing factors. A few summarized below:
Since the outset of engaging with the community we have endeavored to highlight the need for DeFiInsurance; Neptune Mutual built a comprehensive dataset of on-chain hacks available, anywhere, and each week we highlight the many millions of dollars that are stolen as a result of smart contract hacks. Despite this, we have consistently been confronted by projects unwilling to spin up cover pools in our marketplace because of the sentiment that audits of their code are sufficient to persuade their community that their protocol is safe. Less than 0.3% of all digital assets are protected with some form of DeFiInsurance, and yet despite all the media reports of hacks, the conference discussions about the importance of governance or CEX proof-of-reserves, it continues to be the case that it is extremely difficult to get media attention to focus on the need for a fast and efficient means of mitigating smart contract risk.
A variety of approaches have been taken by different DeFiInsurance protocols to address this, from attending multiple conferences throughout the year and significant marketing spend, to the leaner approach that Neptune Mutual took (in part as a result of the bear market in 2023). What can be said is that no DeFiInsurance protocol has managed to achieve significant growth over the last 18 months, sadly the overall TVL of the sector has shrunk a lot.
For all the reasons above, at this moment the best course of action is no longer to double-down on investing in growth, but rather to refund unused capital and close the marketplaces.
The consequences are very tough for the Neptune Mutual team who have spent the past 3 years of their time on the mission to facilitate safer environments within DeFi. The team has delivered products according to the roadmap and the fact that the protocol was never hacked, despite attempts being made on the darkweb, is testament to the expertise, passion and absolute focus on security. The team survived the FTX and UST crisis unscathed, and believed that the continued growth in hacks would lead to growth in the demand for a good solution to mitigate these risks, but sadly, as can be seen right across the DeFiInsurance category, this is not yet in sight. So we would like to thank the team for all the dedication, skill and passion invested into the Neptune Mutual project since the outset.
The team will open source the protocol, including blockchain indexing protocol (subgraph alternative), frontend, middleware, database, and backend code, to make it a true public good. This will allow anyone to fork the code and create covers by defining parameters and premium ranges, potentially leading to innovative covers and organic usage.
The Discord channel will be closed to reduce the risk of phishing and other types of cyber attack, any questions / queries will be responded to in the Telegram channel.
We want to take this final opportunity to thank you all for your support.
Neptune Mutual will contact only its financial backers, with whom a signed agreement exists, in relation to next steps (i.e. holding NPM tokens does not qualify you for any form of refund). Contact will be made only from a neptunemutual.com domain email address so please check the source of any email you may receive very carefully. Please ignore any messages from any other email or social media accounts in relation to token/cash refunds.
A spotlight article on Alpaca Finance with its features, financials, & security record.
Cover policies for Alpaca Finance V1 users are available in our marketplace. You can find the coverage on the Diversified Pool of the BNB Smart Chain.
Alpaca Finance is a popular decentralized protocol that allows leveraged yield farming on the BNB chain. It lets LPs (liquidity providers) supply liquidity to liquidity pools by borrowing undercollateralized loans from the platform. As a result, the LPs receive optimized yield when users swap tokens from the liquidity pools.
The Alpaca Finance Protocol makes yield farming more profitable for LPs. It lends you the funds in multiples of your capital, which you can invest in the pool. So obviously, the yield will be much higher than that of your original capital.
The launch of Alpaca Finance 2.0 has brought some significant improvements to the protocol. Firstly, version 2 supports over-collateralized lending, which enables lenders to borrow against their lending deposits.
Moreover, AF2.0 will enable users to use lending pools for additional uses beyond lending and leveraged yield farming (LYF). Other innovations of the V2 include asset tiers in lending, permissionless listing in lending, the ability to use any whitelisted token for collateral, and so on. This will serve Alpaca Finance users with better user experience, risk management, and capital efficiency.
Alpaca Finance is significant in the DeFi landscape mainly due to its maximized yield capabilities. In addition to that, other aspects of the project including governance, security measures, tokenomics, NFTs, etc. have contributed towards its growth and success to date. Let’s see some of its unique features:
Lending: Though Alpaca Finance is known for its ability to let users borrow funds, you should also know that it also lets you lend your assets. This means you can yield a much safer and steadier yield by investing your funds on the platform. The assets you lend are what is actually borrowed by other users. On that note, you can say Alpaca Finance is a platform that connects lenders and borrowers.
Increased Leverage: You might have understood that Alpaca Finance lets you borrow from the platform and multiply your funds. To be exact, you can get leverage of up to eight times.
Built on the BNB Chain: Many decentralized lending and borrowing platforms like Compound Finance are built on Ethereum, which comes with high gas fees. Alpaca Finance has been built on the BNB chain and offers the same features with lower gas fees to a different audience.
Tokenomics: “ALPACA'' is the native token of Alpaca Finance, which is offered to the users who participate in their ecosystem. Being a fair launch project, there’s no token pre-mining, pre-sale, or allocation of tokens to investors and team members. This makes Alpaca Finance more decentralized and fair to all of the users, as it prevents token accumulation by early investors.
Governance: Alpaca Finance has applied a similar governance structure to Curve Finance, but with their own implementation. You can lock your ALPACA token in the governance vault for a minimum of 1 week to a maximum of 1 year. In return, you’ll receive xALPACA, which represents your voting power in the reward pool. The longer you lock up the token, the more voting rights you receive.
NFTs: The Alpaca Finance NFTs “Alpies” are hand-drawn artworks that are released in two parts: first in the BNB chain and then in Ethereum. The NFTs on both the chains can be bridged back and forth, so you can trade them on OpenSea or other NFT marketplaces. Having Alpies has an actual application in the ecosystem as it lets you access higher leverage on yield farming pools.
Alpaca Finance emits their native token ALPACA as a way to reward the users of their ecosystem, which is helpful for many things like voting and governance.
With the emission of tokens, the supply increases and thus, the token price is bound to go down. However, the protocol has employed a mechanism called “buyback and burn”, where a portion of the trading fees collected is used to buy the tokens back. The bought tokens are then burned, creating a decrease in supply, which consequently maintains the token’s value at a steady price.
Alpaca Finance announced that it would have 188 million ALPACA that would be released with a decaying emission schedule over a period of two years.
All funding details for Alpaca Finance are not publicly available. However, it was announced that TrueUSD will be deploying around 20 million TUSD tokens in the project as a vote of confidence.
As of August 2023, the product, Alpaca Leveraged Yield Farming, has a market cap of nearly $24 million. This signifies that the project has a strong position in the decentralized lending and borrowing space.
Alpaca Finance has an active presence on several social media platforms, which serves as a way to communicate, educate prospects, answer questions, and understand the community.
You can visit their Twitter (X) account to get the quickest insights on their announcements, launches, reports, and recent developments. In addition, their Discord, Reddit, and Telegram channels provide a hub for users to engage in discussions and communicate with the team.
You can also read about the protocol’s developments and updates in detail on their Medium blog. Whereas the YouTube channel is rich with informative videos, tutorials, and Twitter Space recordings where you can visually learn how to use the platform.
Like every DeFi project, Alpaca Finance is also attentive to its security. It has gone through approximately 23 security audits from top firms like Certik, Peckshield, Slowmist, etc. since the launch.
In June 2021, Alpaca Finance received the highest safety score: 94% on BNB Chain from DeFi Safety. Similarly, it got a score of 90 from Certik, which is the third highest code security score on the BNB chain.
In conclusion, Alpaca Finance has established itself as a prominent decentralized lending platform on the BNB chain, attracting users with leveraged yield farming and strong security measures.
Despite its robust security record, you should acknowledge that no platform is 100% immune to hacks or exploits, especially within the constantly evolving DeFi landscape.
To ensure the protection of users' funds, Alpaca Finance has taken proactive steps by creating a coverage pool in the Neptune Mutual marketplace. If you're an Alpaca Finance user, you can access our marketplace, select the BNB Smart Chain, and easily purchase coverage for your funds.
Or, if you have DeFi, CeFi, or Metaverse projects and want to create similar cover pools in our marketplace, you can reach our team through the contact page. Or, you can also connect to us through Twitter, Discord, or Telegram.
We have been offering projects to create cover pools in Ethereum and Arbitrum and have recently launched our marketplace on the BNB Smart Chain.