Yeliz Akmaca 
Alpaca Finance, once one of the largest DeFi protocols on BNB Chain, announced it will cease all operations by the end of 2025. The project was a pioneer in leveraged yield farming but gradually lost sustainability due to increasing competition, declining revenues, and shrinking user interest. Most recently, Binance delisted the ALPACA token, prompting the project to decide on a full shutdown.
Alpaca Finance will gradually close all its products. Users will be able to withdraw their assets from the platform until December 31, 2025. The front-end access will remain available until that date.
Reasons for Alpaca’s Shutdown
Launched without pre-sales, VC investments, or pre-mining, Alpaca Finance relied entirely on protocol usage for revenue. However, its Total Value Locked (TVL), which was over $900 million at the start of 2022, dropped to $54.6 million by 2025. User numbers declined, transaction volumes fell, and funds flowed out. The platform didn’t just offer yield farming; it also launched a stablecoin named AUSD, developed automated vaults, and created a perpetual trading platform called Alperp. However, user interest in these services was insufficient.
Binance’s delisting of the ALPACA token in May 2025 severely impacted the token’s accessibility and liquidity. This also limited the protocol’s ability to allocate remaining resources toward new initiatives. The protocol engaged in merger and acquisition talks but failed to attract any buyers under current market conditions. Following these developments, the team initiated the shutdown process. After four years of operation, Alpaca Finance is exiting the DeFi space.
Important Dates for Users
- June 2025: All leveraged yield farming services will be halted.
- June 30, 2025: Open positions will be automatically closed.
- December 31, 2025: Users can withdraw their assets until this date.
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