ALPACA price tanks 30% as Alpaca Finance begins wind-down after four-year run

Alpaca Finance to Shut Down After Four Years on BNB Chain

Alpaca Finance, a once-prominent decentralized finance project on the BNB Chain, has announced its decision to discontinue leveraged yield farming, stablecoin services, and its perpetual exchange by December. The market reacted negatively to the news, with ALPACA token plummeting nearly 30% to $0.1126.

In a blog post, the Alpaca Finance team cited shrinking revenue, failed acquisition talks, and the recent delisting of ALPACA from Binance as the primary reasons behind this "incredibly difficult decision." The team emphasized that this move is the "most responsible course of action to safeguard our community and ensure a graceful and secure wind-down."

Alpaca Finance, launched in early 2021, had gained traction on the BNB Chain with its leveraged yield farming platform. Over time, the team expanded its offerings to include automated vaults, an AUSD stablecoin, and a perpetual trading platform called "Alperp." However, the team acknowledged that the launch of concentrated liquidity AMMs "fundamentally shifted the landscape," making traditional leveraged yield farming "significantly less compelling and much more difficult to do profitably."

The team also admitted to operating at a loss for over two years, even after downsizing, and stated that continuing under these conditions "is simply not sustainable." Despite exploring mergers and acquisitions, the team revealed that "these deals fell through" as the market weakened in early 2025.

The recent delisting of ALPACA from Binance was described as "another major blow," as it "not only limits token accessibility but also restricts our ability to deploy our remaining warchest effectively toward any new initiatives." The shutdown of Alpaca Finance will proceed gradually, with key deadlines set between June and December.

Key Takeaways:

• Alpaca Finance, a once-prominent DeFi project on BNB Chain, is shutting down its operations by December.
• The team cited shrinking revenue, failed acquisition talks, and the delisting of ALPACA from Binance as the main reasons behind the decision.
• The market reacted negatively, with ALPACA token plummeting nearly 30% to $0.1126.
• The shutdown will be a gradual process, with key deadlines set between June and December.