Once a top protocol on BNB Chain, Alpaca Finance will discontinue leveraged yield farming, stablecoin services, and its perpetual exchange by December.
Alpaca Finance, a decentralized finance project known for leveraged yield farming on BNB Chain, is shutting down after four years — and while the team says it’s the “most responsible” move for the community, the market didn’t take it well, with ALPACA (ALPACA) falling nearly 30% to $0.1126.
In a blog post late Monday, the Alpaca Finance team said it had made “the incredibly difficult decision to begin sunsetting Alpaca Finance and all of its products,” citing shrinking revenue, failed acquisition talks, and the recent delisting of ALPACA from Binance as reasons behind the move.
“This choice wasn’t made lightly, but we believe it is the most responsible course of action to safeguard our community and ensure a graceful and secure wind-down.”
The Alpaca Finance team
Alpaca Finance launched in early 2021 with a leveraged yield farming platform that gained traction on BNB Chain. Over time, the team introduced other products such as automated vaults, an AUSD stablecoin, and a perpetual trading platform dubbed “Alperp.”
However, the launch of concentrated liquidity AMMs “fundamentally shifted the landscape,” the team said, adding that “traditional leveraged yield farming became significantly less compelling and much more difficult to do profitably.”
The team also admitted it had “been operating at a loss for over two years,” even after downsizing, adding that continuing under these conditions “is simply not sustainable.” The Alpaca Finance team says it explored mergers and acquisitions but added that “these deals fell through” as the market weakened in early 2025.
The recent delisting of ALPACA from Binance “was 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 team wrote in the blog post. The shutdown will proceed gradually, with key deadlines set between June and December.
