Alpaca Finance to Cease Operations in 2025 Amid Financial Struggles and Binance Delisting

Alpaca Finance, once a leading name in leveraged yield farming on the BNB Chain, is set to shut down by the end of 2025 after facing prolonged revenue decline, unsuccessful merger negotiations, and the recent removal of its native token from Binance.

Launched during the DeFi boom of 2021, Alpaca quickly rose to prominence by offering users leveraged farming strategies that amplified liquidity pool yields. At its peak, the protocol managed over $1 billion in total value locked (TVL) and was a dominant platform on BNB Chain.

Despite early success, the company revealed it had been operating at a loss for more than two years. The fair launch model, which lacked venture capital support or pre-mined tokens, coupled with a competitive and capital-intensive DeFi environment, strained Alpaca’s sustainability.

The decisive setback came when Binance delisted the ALPACA token last month. Although the token experienced a temporary price surge fueled by forced liquidations, the delisting restricted liquidity and limited user access, impeding efforts to raise capital or pursue new partnerships.

“Several merger and acquisition discussions were underway and showed promise,” Alpaca’s team said, “but as the crypto market softened in early 2025, these talks fell apart.”

Alpaca will begin winding down its services—including yield farming, automated vaults, and decentralized perpetual contracts—over the coming months. Front-end access to the platform will remain open until December 31, 2025, allowing users sufficient time to retrieve their assets.

“This decision was made with the community’s best interests in mind,” the team stated. “Our goal is to ensure a smooth and secure shutdown.”

Currently, ALPACA trades near $0.08, a steep drop from its all-time high reached during the height of DeFi’s initial wave.

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