Alpaca Finance to Shut Down All Operations Following Binance Token Delisting

Alpaca Finance, a once-popular decentralized finance (DeFi) protocol known for offering leveraged yield farming, announced it will be shutting down all operations in the coming weeks. The decision follows the recent delisting of its native ALPACA token by major cryptocurrency exchange Binance.

In a public statement shared Monday on X (formerly Twitter), Alpaca Finance said the closure comes after “extensive internal deliberation” and a “thorough evaluation of possible paths forward.” The team described the move as “incredibly difficult,” but framed it as a necessary step to ensure a secure and responsible exit for its community.

Alpaca Finance launched with the aim of providing non-custodial, leveraged yield farming on blockchain networks like BNB Chain and Fantom. Over the years, it carved out a niche in the DeFi space. But the landscape has shifted dramatically.

“The DeFi environment is now more saturated and favors larger, better-capitalized projects with generous token incentives. This evolution, combined with the Binance delisting, has significantly limited our ability to continue.” + the Alpaca team said.

Binance removed ALPACA from its platform in April. While the exchange didn’t give a detailed reason, its delisting criteria typically include project performance, trading volume, liquidity, and team commitment. Alpaca Finance acknowledged the delisting as a "major blow," noting it reduced both the token’s accessibility and the project’s ability to fund new initiatives.

In terms of wind-down logistics, Alpaca Finance stated that new positions on all farms will be disabled by the first week of June 2025. Any positions still open by June 30 will be automatically closed. The team emphasized its commitment to a “graceful and secure” shutdown process.