ALPACA Finance, a decentralized finance loan protocol on the BNB and FANTOM channel, announced the gradual closure of its platform and all associated products.
The decision, revealed on May 26, comes after what the team described as an “in -depth internal deliberation and an assessment of future development guidelines”.
Alpaca Finance announces the closure
Launched without presale, funding of venture capital or pre-mining, ALPACA Finance allowed users to open leverages effects by borrowing from the deposit boxes. However, the protocol recently faced assembly challenges, leading to this closing announcement.
In an official declaration on their average blog and their X account (formerly Twitter), the team cited current financial difficulties as the main reason for the closure.
“In truth, the team has been working at a loss for more than two years, even after a significant reduction in the team. Continue under these conditions is simply not lasting,” said the blog.
The Defilama data showed that the total value of the total value of Alpaca Finance (TVL) reached a record summit of more than $ 900 million at the beginning of 2022. However, since then, it has been faced with a continuous decrease. Since the latest data, the TVL amounted to only $ 54.6 million.
“With TVL and the declining yields, the revenues have followed suit,” added the team.
The team also cited increased competition and market saturation as key engines behind its decision. In particular, the announcement occurs about a month after Binance announced the radiation of the native token of the platform, Alpaga.
“The recent delimitation of Binance alpaca was another major hit. It limits not only accessibility in tokens, but also restricted our ability to deploy our wakest remaining effectively towards all new initiatives,” said Alpaga Finance.
Despite the radiation, the value of the token increased by more than 1,000% in the days that followed, defying the typical market behavior. The Dramatic Rally of Alpaga drew widespread attention and aroused concerns about market manipulation.
Nevertheless, the gains were ephemeral and the latest news further lowered the price. Beincryptto data has shown that the ALPAGA price has depreciated 32.1% in the last day. At the time of writing the editorial staff, the token negotiation price was $ 0.11.
Alpaca Finance detailed a structured stop plan on all the main product ranges to ensure a fluid and secure output for users. The platform will stop accepting new positions on the original lever agriculture platform (AF1.0) in early June. It will also automatically close all remaining positions by June 30, 2025.
The team has placed Alperp, the perpetual trading product, in reduction mode only. It will be completely closed at the end of June.
In addition, they immediately interrupted all the automated chests, converting the remaining funds into basic tokens and returning them to users. Borrowing on the AF2.0 money market will be deactivated and open positions will be made automatically by July 30, 2025.
The protocol will also end its buyout and burn program and will distribute income to governance stakers. Finally, the platform interface will remain available for users to withdraw assets until December 31, 2025.
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