Alpaca Finance, once a cornerstone on the BNB chain and an early leader in the Leveraged Proceeds of Agriculture, will close the activities by the end of 2025 due to a non-durable business model in the midst of a more competitive and capital-intensive Defi landscape.
The protocol said on Monday that it will close all products, including the original yield platform, automated safes and decentralized perpetuals in the coming months, in the coming months.
Front-end access remains available until December 31, 2025, to give users the time to withdraw their assets.
“This choice was not made light,” wrote the Alpaca team. “But we believe that this is the most responsible way of acting to protect our community and to ensure a graceful and safe wind.”
Launch during the Decentralized Finance’s (Defi) 2021 Boom, Alpaca quickly became a fame on the BNB chain and offered livered yield agricultural strategies with which users could strengthen the return by borrowing capital by borrowing the Liquuidity Pool farm (LP) tokens.
At its peak, Alpaca kept more than $ 1 billion in total value locked (TVL) and was one of the most used protocols in the chain.
According to the team, Alpaca has been working more than two years with losses more than the team, with income directly bound by protocol use-a challenge that has been exacerbated by the Fair launch structure of the project without VC support or in advance mined tokens.
The last blow came at the end of April, when Binance Alpaca, the native token of the protocol, removed.
While the event caused a short price rally of 550% as a result of short liquidations, including $ 55 million in forced closures in one day, it also seriously limited the liquidity and user access to token.
That, the team said, made it harder to pursue new initiatives or strategic mergers.
“We have investigated M&A discussions with different projects, and some are useful,” the team said. “But when the market went down again at the beginning of 2025, those deals fell on.”
Alpaca, the token of the project, was the last trade at around $ 0.08, a decrease of more than 90% compared to its highest high in 2021.
