Alpaca Finance Calls it Quits: BNB Chain's Once-Top Protocol Shuts Down

Leveraged Yield Farming, Stablecoins, and Perpetuals to Cease by December

Hold onto your hats, crypto fans! Alpaca Finance, the big shot in BNB Chain's leveraged yield farming scene, is pulling the plug. They're shutting down everything—leveraged yield farming, stablecoin services, and even their perpetual exchange. It's all coming to a halt by December.

Yep, you heard that right. After four wild years, Alpaca Finance is waving goodbye. And while they claim it's the "most responsible" move for their community, the market's reaction was brutal. ALPACA (ALPACA) tanked nearly 30%, crashing to $0.1126. Ouch!

In a bombshell blog post dropped late Monday, the Alpaca Finance crew spilled the beans. They've made the gut-wrenching decision to start winding down the whole operation. Shrinking revenue, failed acquisition talks, and the recent boot from Binance are the culprits behind this drastic move.

"This choice wasn't made lightly, but we believe it is the most responsible course of action to safeguard our community and ensure a graceful and secure wind-down."

The Alpaca Finance team

Alpaca Finance burst onto the scene back in early 2021 with a leveraged yield farming platform that took BNB Chain by storm. But they didn't stop there. They rolled out automated vaults, an AUSD stablecoin, and a perpetual trading platform they called "Alperp."

But then, bam! The launch of concentrated liquidity AMMs turned everything upside down. The team admitted that "traditional leveraged yield farming became significantly less compelling and much more difficult to do profitably."

Get this—they've been bleeding red ink for over two years, even after slashing their team size. "Continuing under these conditions is simply not sustainable," they confessed. They tried to merge or get acquired, but those deals crumbled as the market tanked in early 2025.

And if that wasn't enough, the recent delisting from Binance was a knockout punch. "It not only limits token accessibility but also restricts our ability to deploy our remaining warchest effectively toward any new initiatives," the team lamented in the blog post. The shutdown's gonna happen in stages, with key deadlines set between June and December.