Alpaca Finance to Wind Down Operations by End of 2025
Alpaca Finance will cease operations by the end of 2025 due to an unsustainable business model in a competitive DeFi environment. Key points include:
- Winding down all products, including yield farming and automated vaults, over the next few months.
- Front-end access will remain until December 31, 2025, for asset withdrawals.
- Alpaca peaked with over $1 billion in total value locked (TVL) during its launch in 2021.
- The protocol has operated at a loss for over two years, relying on user activity for revenue.
- Binance delisted ALPACA, leading to liquidity issues and difficulty in pursuing new initiatives.
- ALPACA token is currently trading around $0.08, down over 90% from its all-time high.
The Alpaca team stated the decision was made to ensure a responsible wind-down for their community.