Alpaca Finance: The Dramatic Downfall of a DeFi Darling! 🦙💔

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What to know:

  • Alpaca Finance is throwing in the towel by the end of 2025. Apparently, their business model was about as sustainable as a paper umbrella in a monsoon. ☔️
  • They’ll be winding down all products, including yield farming and automated vaults, because who needs those pesky profits anyway? 💸
  • Users can withdraw their assets until December 31, 2025. So, you’ve got time to grab your cash before the lights go out! 🎉

Alpaca Finance, once the Beyoncé of the BNB Chain, is now facing the music and shutting down operations by the end of 2025. Apparently, the competition got too fierce, and their business model was about as stable as a three-legged chair. 🪑

On Monday, the protocol announced it would start winding down all products, including its original yield farming platform, automated vaults, and decentralized perpetuals. Because why not go out with a whimper? 😩

Front-end access will remain available until December 31, 2025, giving users a chance to withdraw their assets. Think of it as a last call at the bar before they kick you out! 🍻

“This choice wasn’t made lightly,” the Alpaca team wrote. “But we believe it is the most responsible course of action to safeguard our community and ensure a graceful and secure wind-down.” Translation: We’re sorry, but we’re out of options! 😬

Launched during the DeFi boom of 2021, Alpaca quickly became a big deal on BNB Chain, offering leveraged yield farming strategies that let users amplify returns by borrowing capital. Because who doesn’t love a good gamble? 🎲

At its peak, Alpaca held over $1 billion in total value locked (TVL). That’s right, they were the cool kids on the block! But now? Not so much. 😢

Internally, Alpaca had been operating at a loss for over two years. Apparently, their revenue was tied directly to protocol usage—who knew that was a bad idea? 🤷‍♀️

The final nail in the coffin came in late April when Binance decided to delist ALPACA, the protocol’s native token. Ouch! That’s like being dumped via text message. 📱

While this caused a brief 550% price rally due to short liquidations (because chaos is fun, right?), it also severely restricted liquidity and user access to the token. Talk about a rollercoaster! 🎢

“We explored M&A discussions with several projects, and some progressed meaningfully,” the team said. “But as the market turned downward again in early 2025, those deals fell through.” Classic case of bad timing! ⏳

ALPACA, the project’s token, was last trading at approximately $0.08, down over 90% from its all-time high in 2021. So, if you’ve got a spare change jar, you might want to toss it in there instead! 🥴

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2025-05-27 12:39