The Alpaca Finance protocol, which previously held a leading position in the BNB Chain ecosystem, has announced its complete shutdown by December 2025.

The main reasons cited were a loss-making business model, the delisting of the ALPACA token on Binance, and the failure of merger negotiations.

The team will gradually close all products, including the yield farming platform, automated vaults, and decentralized perpetual bonds. Users will be able to withdraw assets through the project's interface until December 31, 2025.

"This step is the only way to ensure a safe conclusion of operations," the developers stated.

Alpaca Finance launched in 2021 during the DeFi boom. According to the team, at its peak popularity, over $1 billion was locked in the protocol, but the lack of venture support and reliance on user activity for revenue led to two years of losses.

At the time of writing, ALPACA is trading at $0.10, down 98% from its all-time high in 2021.

Recall that in March, the Web3 project Harpie announced its closure due to an unsustainable business model.

Later, the DeFi project Linear Finance reported its cessation of operations due to financial issues.#ALPACA