BNB Chain’s Alpaca Finance, once a DeFi giant, is winding down and closing its doors.

Alpaca Finance to Shut Down by End of 2025, Citing Revenue Decline and Binance Delisting

After four years of pioneering leveraged yield farming on the BNB Chain, Alpaca Finance has announced plans to close its operations by the end of 2025. The decision comes amid shrinking revenues, stalled merger talks, and the recent delisting of its ALPACA token from Binance.

Launched during the DeFi surge in 2021, Alpaca Finance quickly became a major platform by allowing users to increase yield farming profits through borrowed capital. At its peak, it managed over $1 billion in total value locked and stood as one of the most prominent protocols on BNB Chain.

Despite its early success, Alpaca struggled financially, operating at a loss for more than two years due to a revenue model heavily dependent on usage and a fair launch strategy without venture capital backing.

The Binance delisting in April delivered a severe blow, restricting liquidity and access to ALPACA tokens. Although the token briefly rallied on forced liquidation events, the setback curtailed the project’s capacity to advance or finalize strategic partnerships.

The team revealed that several merger and acquisition talks had been underway but fell apart amid the market downturn earlier this year.

Alpaca Finance will begin phasing out its products, including its leveraged yield farming platform and decentralized perpetuals, while keeping front-end access open until December 31, 2025, to facilitate user withdrawals.

“This decision was made carefully, prioritizing the security and interests of our community,” the project’s team said in a statement.

ALPACA’s current price hovers around $0.08, marking a significant decline from its 2021 highs.