Summary
- Alpaca Finance announced that due to financial difficulties, they will allow asset withdrawals until December 31 and will cease new service offerings from the first week of next month.
- They explained that the decline in fees and user activity due to the market downturn was an issue, and M&A opportunities were lost due to the downturn earlier this year.
- Alpaca stated that despite launching various products, they could not resolve structural issues and decided to cease operations.
Alpaca Finance (ALPACA) has announced that it will cease operations due to financial difficulties./
On the 26th (local time), Alpaca Finance stated through Medium, "Due to the decrease in Total Value Locked (TVL) and yields, we have been in deficit for over two years. We have now reached our limit," and "We have decided to gradually shut down Alpaca Finance and all products." They continued, "Starting from the first week of next month, all new services for farms (yield farming pools) will be halted," and "Please close your positions as soon as possible, and we will keep the front end operational to allow asset withdrawals until December 31 of this year."
They emphasized that this was an unavoidable decision. The foundation explained, "To overcome financial difficulties, we launched various products such as Automated Vaults, the stablecoin AUSD, and the decentralized perpetual futures exchange Alperp," but "the decline in fees and user activity due to the market downturn became a problem." They added, "There were also discussions about mergers and acquisitions (M&A), but all opportunities were lost due to the downturn earlier this year."
Additionally, they expressed gratitude to community users. Alpaca stated, "The journey so far was possible thanks to the incredible support of the community," and "We thank all users who believed in and used us during both good and difficult times."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
