Alpaca Finance to sunset 'all of its products' following Binance delisting

Alpaca Finance said it plans to wind down operations in the coming weeks. The announcement comes in the wake of Binance delisting the project's token last month.

"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," the project said Monday in a post on X . "This choice wasn’t made lightly, but we believe it is the most responsible course of action to safeguard our community and ensure a graceful and secure wind-down."

Alpaca Finance, which has operated as a lending protocol offering leveraged yield farming on BNB Chain and Fantom, had its ALPACA token delisted by Binance in April . "The recent delisting of ALPACA from Binance was another major blow," Alpaca Finance said Monday. "It not only limits token accessibility but also restricts our ability to deploy our remaining war chest effectively toward any new initiatives."

While Binance didn't specify why it chose to delist ALPACA, the exchange generally does so after conducting an assessment of various factors — such as how a project is progressing, its liquidity and its leaders' commitment. 

ALPACA had dropped roughly 16% during the past day's trading, as of 1:26 p.m. ET on Monday, according to CoinGecko.

On Monday, Alpaca Finance also pointed to some of the macro factors its leaders believe have contributed to the project's decreased viability. "The DeFi landscape has evolved dramatically. It’s more competitive, more saturated, and often favors large, capitalized players with new token supplies to give away," the project said.

In its sunsetting statement, Alpaca Finance also said it will "disable opening of new positions for all farms by the first week of June 2025," adding that "any remaining active positions by 30 June 2025, will be automatically closed."