2025-05-27
Alpaca Finance is a decentralized
finance (DeFi) platform lets users lend and borrow crypto assets with
leverage, mint stablecoins,
It primarily operates on the BNB Chain
and Fantom networks. It operated as a leveraged yield farming protocol on both
BNB Chain and Fantom.
On May 26, 2025, Alpaca Finance has
announced it will cease all operations and sunset its products following the
delisting of its native token, ALPACA, by Binance on May 2, 2025.
This decision concludes the DeFi
protocol's four-year journey, which began in early 2021.
The Alpaca Finance team cited several
factors leading to this decision as reasons for shutdown.
First is lack of external funding, operating
without prior funding, the protocol relied solely on revenue generated from its
services.
Declining total value locked (TVL) and
reduced yields adversely affected its financial sustainability.
Second is increased competition, the rapid changing
in DeFi landscape introduced heightened competition.
Despite launching products like the
AUSD stablecoin, the decentralized perpetual exchange (AIperp), and automated
vaults (AVs), the platform struggled to maintain its market position.
Third reason is binance delisting, the
removal of ALPACA from Binance largely impacted token accessibility and
liquidity, further challenging the protocol's operations.
Alpaca Finance said it plan to wind
down operations in the coming weeks.
Shutdown Timeline
Alpaca Finance has outlined a
structured wind-down process to ensure user assets are managed appropriately:
Users are encouraged to close all
active positions and repay any outstanding loans before the specified deadlines
to avoid automatic closures.
