Alpaca Finance, a once-gaining attraction DeFi platform for leveraged yield farming, announces its closure after four years, citing financial difficulties and market challenges, impacting users and the broader DeFi ecosystem. On May 26, 2025, Alpaca Finance, a prominent decentralized finance (DeFi) protocol known for its leveraged yield farming on BNB Chain, announced its decision to wind down operations. Similarly, smaller DeFi tokens with low liquidity that Binance extends the Monitoring Tag, such as Perpetual Protocol (PERP), Hifi Finance (HIFI), LeverFi (LEVER),… might follow ALPACA’s trajectory if they fail to innovate or maintain user trust.