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ALPACA Token Plummets Over 30% After Protocol Shutdown Announcement
ALPACA Token Plummets Over 30% After Protocol Shutdown Announcement
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Alpaca Finance, a decentralized lending protocol, revealed its decision to cease operations on May 26 following prolonged financial strain. The team cited unsustainable operating losses persisting for over two years despite significant downsizing efforts.
Launched without venture backing or pre-mined tokens, the platform specialized in Leveraged yield farming by borrowing from deposit vaults. Its native ALPACA token immediately shed 30% of its value upon the shutdown announcement.
The closure underscores the harsh realities facing undercapitalized DeFi projects in current market conditions. "Operating at a loss became untenable," the team stated, marking the end for a protocol that once facilitated over $1 billion in total value locked.
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