DeFi Protocol Alpaca Finance to Shut Down by End of 2025

The Alpaca Finance protocol, which was previously one of the key DeFi projects in the BNB Chain ecosystem, has officially announced its gradual closure by December 2025. The team announced the decision on their X social media account, emphasizing that this development was the result of careful analysis and long discussions within the team.

"After extensive internal consultations and a comprehensive assessment of possible development scenarios, we have made the difficult decision to begin the process of shutting down Alpaca Finance and all its products. This was not an easy decision, but we believe it is the most responsible one," the project said in an official statement.

The developers cited the following as the main reasons for the closure: an unprofitable business model; delisting of its own ALPACA token from the Binance exchange, one of the largest liquidity providers; unsuccessful negotiations on mergers or acquisitions that could have saved the protocol.

The project, launched back in 2021, was part of the growth of the DeFi sector, when users actively took an interest in farming and automated money management strategies. At the peak of its popularity, Alpaca Finance had more than $1 billion in funds locked, but the dependence on user flow and the lack of sustainable funding led to the platform regularly operating in the red. Now the team is gradually shutting down all services, including the yield farming platform; automated storage; decentralized perpetual bonds.