Alpaca Finance: Challenges and Opportunities in the World of DeFi
Alpaca Finance is a decentralized finance (DeFi) platform operating on the BNB Chain and Fantom, focusing on leveraged yield farming. This platform allows users to borrow funds to enhance the yields from yield farming, thus increasing potential profits. Lenders can also earn stable rewards by providing liquidity. However, in April 2025, Alpaca Finance faced a significant challenge. Binance announced the delisting of the ALPACA token, which caused high volatility. The price of ALPACA briefly surged by 64.94% on April 25, 2025, with trading volume reaching 200.01 million USD.
Unfortunately, this delisting was triggered by declining liquidity, regulatory issues, and project stagnation, shaking market confidence. Many users began to withdraw their positions, although the token could still be traded on other exchanges like Gate.io.
In the midst of challenges, Alpaca Finance continues to strive to maintain their ecosystem. On April 22, 2025, they conducted the 213th token burn, removing 18,888 ALPACA (approximately 900 USD) from circulation. In total, 34.79 million tokens (18.51% of supply) have been burned in the last two years, demonstrating their commitment to maintaining the token's value.
Conclusion: Alpaca Finance offers interesting opportunities in DeFi, but the delisting from Binance serves as a warning of the risks involved. For investors, it is essential to monitor the developments of this project before investing, while considering the long-term potential of the leveraged yield farming they offer.
$ALPACA
