Chiara Bianchi
Alpaca Finance has confirmed it will cease all operations, following a turbulent period marked by Binance’s delisting of its native token, ALPACA.
In an official announcement posted on X (formerly Twitter), the team stated that after careful consideration, it would begin a full sunset process for all Alpaca Finance products and services in the coming weeks.
“This wasn’t an easy decision,” the team emphasized, “but it’s the most responsible path forward to protect our community and ensure a smooth exit.”
Binance Delisting Triggers Major Shift for Alpaca Ecosystem
Once a popular protocol for leveraged yield farming on BNB Chain and Fantom, Alpaca Finance has struggled to maintain momentum since Binance removed ALPACA from its exchange listings in April 2025.
The team cited the delisting as a critical turning point, stating it had severely impacted token accessibility and hindered strategic flexibility.
“With ALPACA no longer tradable on a top-tier exchange, deploying our remaining treasury to pursue fresh initiatives has become extremely difficult,” the developers noted.
Binance did not disclose a specific reason for delisting ALPACA. However, such actions typically stem from evaluations based on project activity, liquidity levels, and developer commitment.
Declining DeFi Viability: Market Competition Squeezes Out Smaller Protocols
Beyond the delisting, Alpaca Finance also acknowledged broader market dynamics that influenced its decision to shut down.
According to the statement, the DeFi space has grown increasingly saturated, with success often skewed toward heavily funded protocols that can sustain aggressive incentive models and distribute new tokens to users.
“The landscape now favors giants,” Alpaca said. “Without continuous token emissions or deep capital reserves, smaller players struggle to stay relevant.”
As of Monday afternoon, ALPACA token was down around 16%, according to data from CoinGecko.
Timeline for Closure: Final Positions to Auto-Close in June 2025
To ensure a secure transition, Alpaca Finance will block the creation of new positions on all farms by the first week of June 2025. Users with existing positions are urged to manage them proactively, as the platform confirmed that any remaining active positions will be forcibly closed on June 30, 2025.
This marks the end of Alpaca Finance’s journey as a once-prominent DeFi lending protocol, closing the chapter on years of participation in the evolving world of decentralized finance.
