Unable to withstand the pain of Binance delisting: The veteran yield protocol Alpaca Finance announces shutdown, completely closing by the end of June.

The once-popular DeFi protocol Alpaca Finance, which was all the rage in 2021, has recently announced that it will gradually shut down all products and services in the coming weeks, unable to withstand the pressures of market realities and regulatory constraints. Alpaca's exit not only symbolizes the end of a project but also reflects the current DeFi ecosystem's challenges in surviving amid fierce competition and the scrutiny of CeFi.

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From Peak to Curtain Call: The Rise and Fall of Alpaca Finance

Alpaca Finance is a leveraged yield protocol deployed on BNB Chain and Fantom, launched in 2021 through a fair launch ( without pre-sale, investors, or pre-mining features, and it became one of the most popular lending and mining platforms in the market. The protocol allows users to borrow to amplify yields while providing robust returns for lenders.

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However, as the Decentralized Finance market matures, competition intensifies and the pace of innovation slows, Alpaca faces the pressure of a continuously declining Total Locked Value )TVL(, which has shrunk by over 95% to 21,000 ETH since its historical high of 476,000 ETH in October 2021.

Binance's delisting triggered sharp price fluctuations, raising suspicions of manipulation.

However, the real lethal blow came in April this year, when Binance announced that it would delist four tokens including $ALPACA on May 2, causing market sentiment to deteriorate rapidly.

As soon as the news came out, the price of $ALPACA plunged more than 80% at one point, from $0.31 to $0.065. However, in a matter of days, the price skyrocketed 21-fold, touching $1.47, sparking market debate and price manipulation. Of course, this abnormal event-driven volatility can lead to short )short squeeze( due to low liquidity.

The price of $ALPACA has plummeted 28.2% in a single day and 56.7% in a month. Alpaca Finance team: Protecting the community and ensuring a smooth exit.

After a series of upheavals, Alpaca Finance officially posted on the X platform on May 26, announcing that after in-depth discussions and careful evaluations, it will sequentially close all products.

After extensive internal deliberation and a thorough evaluation of possible paths forward, we have made the incredibly difficult decision to begin sunsetting Alpaca Finance and all of its products. This choice wasn’t made lightly, but we believe it is the most responsible course… pic.twitter.com/kwLXv87BsR

— Alpaca Finance δ0 )@AlpacaFinance( May 26, 2025

According to the announcement, the closure process will be implemented in phases:

Effective immediately: Stop new users from opening leveraged positions.

Early June: Disable all new position opening functions.

End of June: Automatically close all remaining active positions

The team emphasizes that this move is to ensure transparency and stability during the platform's exit process, and advises users to withdraw their assets in advance to protect their funds from being affected.

Future Insights: How should DeFi projects protect themselves?

The curtain call of Alpaca Finance also provides an opportunity for reflection for the DeFi community. Decentralized Finance, as the most promising development sector in the crypto market, is no longer the blue ocean phase of 2020. The way to survive today, in addition to technological innovations, requires capital and liquidity strategies, as well as flexibility to respond to changes in exchange policies.

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This article cannot withstand the pain of Binance delisting: the established yield protocol Alpaca Finance announces its shutdown, fully closing by the end of June, first reported on Chain News ABMedia.