On the evening of May 26, Alpaca Finance, the leveraged yield farming protocol that was once a symbol of DeFi on the BNB Chain, officially announced the closure of all products after 4 years of operation. The decision was made after a long period of the team struggling during the sluggish market phase, culminating in the delisting of the ALPACA token by Binance in April 2025.
The project will gradually cease its products from June 2025 to the end of the year, including: stopping the opening of yield farming positions, halting automatic vaults, shutting down the Alperp derivatives exchange, closing the lending sector, and stopping the buyback & burn program. The user interface will remain until 31/12/2025 to support users in withdrawing assets.
Launched in early 2021, #ALPACA was once a cornerstone of the BNB Chain ecosystem, attracting a large TVL due to its leveraged farming model. However, the rise of concentrated liquidity AMMs like #uniswap V3, along with the weakening DeFi trend and capital outflows from the market, has caused Alpaca to gradually fall behind. Despite efforts to optimize operations and seek M&A, the project could not avoid prolonged losses.
In closing the statement, the Alpaca team expressed pride in having been an important part of DeFi and hopes that the experiences from the project will continue to inspire future generations.
Crypto contact: The closure of Alpaca Finance highlights the fierce competition and high risks in the DeFi market, even for projects that were once leaders. This is also a reminder for investors to carefully assess the model, potential, and adaptability of the project in a constantly changing market.
Risk warning: Investing in cryptocurrencies and DeFi projects always carries high risks. Investors need to thoroughly research and take responsibility for their own decisions.