Once a dominant force in DeFi on BNB Chain, Alpaca Finance prepares for shutdown.

Alpaca Finance Announces Shutdown Following Revenue Decline and Binance Token Delisting

Alpaca Finance, a pioneer in leveraged yield farming on the BNB Chain, has revealed plans to shut down all operations by the end of 2025. The decision comes after years of dwindling revenue, failed merger talks, and the recent removal of its native ALPACA token from Binance’s exchange.

Established during the DeFi surge in 2021, Alpaca quickly became a major player by allowing users to maximize farming yields through leverage. At its peak, the protocol managed over $1 billion in total value locked (TVL) and maintained a strong presence on the BNB Chain.

However, internal reports indicate the project has been running at a loss for more than two years, struggling to sustain itself without venture capital support or pre-mined token advantages. The competitive and capital-heavy environment of DeFi further pressured the platform’s viability.

The turning point arrived in April, when Binance delisted ALPACA. Though the token experienced a brief spike due to forced liquidations, the delisting severely limited liquidity and hindered Alpaca’s ability to fund future growth or pursue strategic partnerships.

“We explored various merger and acquisition options, some of which were progressing well,” Alpaca’s team stated. “Unfortunately, the downturn in early 2025 caused these negotiations to fall apart.”

Alpaca will gradually discontinue its product suite—including its leveraged yield farming, automated vaults, and decentralized perpetual contracts—allowing users to withdraw assets until December 31, 2025.

“This was a difficult but necessary decision to protect our community and ensure a responsible exit,” the team added.

The ALPACA token now trades around $0.08, a significant decline from its peak during the DeFi boom.