Alpaca Finance, a popular decentralized finance (DeFi) platform, said it will shut down and stop all its services. The firm announced its decision to shut down because it was losing money and facing tough competition in the DeFi world.
The firm went through ups and downs in four years in two crypto markets, which made things tough for it. Therefore, the team decided to shut down. The firm had a big name on the BNB Chain and was known for leveraged yield farming, where users could borrow cash to increase their earnings from crypto farming.
The platform was a key player when DeFi was just starting to grow. The platform had allowed its users to earn profits in a new way. The firm had shared this news on X after a lot of careful thinking. The team has decided to close it to keep its users safe.
Alpaca Finance has stated that, “The team looked back on their work with pride, saying they couldn’t have done it without their community’s support during good and tough times.” They’re now starting the process to close down carefully and will share updates with their users along the way. “From becoming a top protocol on BNB Chain to helping define leveraged yield farming, our journey was only made possible by the incredible support of our community,” the statement read.
The ending process will be conducted in a structured manner to ensure user funds are handled over to them securely. The firm has shared a picture of cartoon alpacas with a sunset in the background, showing that the platform’s journey is coming to an end.
People in the community had different reactions. Some were thankful for what the firm did, while others were upset, saying the team did not manage things well.
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