Alpaca Finance to Wind Down Operations After Four Years Amid Declining Revenues and Binance Delisting
Alpaca Finance, once a leading leveraged yield farming platform on the BNB Chain, announced it will cease operations by the end of 2025. The decision follows sustained revenue drops, unsuccessful merger discussions, and last month’s removal of its ALPACA token from Binance.
Founded during DeFi’s explosive growth in 2021, Alpaca gained widespread adoption by enabling users to borrow capital and amplify returns on liquidity pools. The protocol’s total value locked (TVL) surpassed $1 billion at its height, marking it as a key player on BNB Chain.
However, Alpaca’s revenue model—tied closely to platform usage—became increasingly unsustainable, compounded by a lack of venture capital support and its community-driven fair launch approach. The project reportedly operated at a loss for over two years.
The Binance delisting in April was a critical setback. Despite a short-lived price surge triggered by liquidations, the reduced liquidity and trading access severely impacted the project’s ability to innovate or pursue strategic partnerships.
“While we engaged in several promising merger talks, the market downturn in early 2025 caused these discussions to collapse,” Alpaca’s team explained.
The shutdown will be gradual, with the platform maintaining front-end access until December 31, 2025, allowing users ample time to withdraw their funds safely.
“This was not an easy call but represents the most responsible path forward for our community,” the team concluded.
Currently, ALPACA trades near $0.08, reflecting a sharp decline from its all-time high during the 2021 DeFi boom.
