  Bounded local G-shtukas are function field analogs for p-divisible groups
with extra structure. We describe their deformations and moduli spaces. The
latter are analogous to Rapoport-Zink spaces for p-divisible groups. The
underlying schemes of these moduli spaces are affine Deligne-Lusztig varieties.
For basic Newton polygons the closed Newton stratum in the universal
deformation of a local G-shtuka is isomorphic to the completion of a
corresponding affine Deligne-Lusztig variety in that point. This yields bounds
on the dimension and proves equidimensionality of the basic affine
Deligne-Lusztig varieties.
