Alpaca Finance to Wind Down Operations by December
Alpaca Finance, a prominent decentralized finance platform on BNB Chain, is set to close its doors by December.The project, known for its leveraged yield farming, is shutting down after four years of operation.This decision comes as a surprise, causing the ALPACA token to drop nearly 30% to $0.1126.
In a recent blog post, the Alpaca Finance team explained their tough decision.They cited shrinking revenue, failed acquisition talks, and the delisting of ALPACA from Binance as key reasons. The team believes this is the moast responsible action to protect the community and ensure a smooth shutdown.
Alpaca Finance started in 2021 with a leveraged yield farming platform. It later added automated vaults,an AUSD stablecoin,and a perpetual trading platform. Though, the rise of concentrated liquidity AMMs made conventional leveraged yield farming less profitable.
The team has been operating at a loss for over two years, even after downsizing. They explored mergers and acquisitions but faced setbacks as the market weakened in early 2025. The delisting from Binance further limited their options.
the shutdown will happen gradually, with key deadlines between June and December. This move aims to safeguard the community and ensure a secure wind-down process.
