Alpaca Finance, once a leading protocol within the BNB Chain ecosystem, has announced it will completely cease operations by December 2025.
After extensive internal deliberation and a thorough evaluation of possible paths forward, we have made the incredibly difficult decision to begin sunsetting Alpaca Finance and all of its products. This choice wasn’t made lightly, but we believe it is the most responsible course… pic.twitter.com/kwLXv87BsR
— Alpaca Finance ?δ0 (@AlpacaFinance) May 26, 2025
The primary reasons cited include an unprofitable business model, the delisting of the ALPACA token from Binance, and failed merger negotiations.
The team will gradually shut down 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.
Launched in 2021 during the DeFi boom, Alpaca Finance reportedly had over $1 billion locked at its peak. However, the lack of venture support and reliance on user activity for revenue led to two years of losses.
At the time of writing, ALPACA trades at $0.10, a 98% decline from its all-time high in 2021.
In March, the Web3 project Harpie announced its closure due to an unsustainable business model.
Later, the DeFi project Linear Finance reported it would cease operations due to financial difficulties.