What is ALPACA? A Guide to This Emerging Token

Alpaca Finance’s ALPACA token rose to prominence during the DeFi boom as the native token of a leveraged yield farming protocol on BNB Chain. If you’re seeing headlines about ALPACA in 2025, it’s because the project announced a phased wind‑down this year — a development that materially affects how holders and users should think about the token and the protocol. Read on for a concise, factual overview of what ALPACA is, its tokenomics and utilities, the recent developments to watch, and practical safety tips for holders. (docs.alpacafinance.org)

What ALPACA (Alpaca Finance) is

• Alpaca Finance began as a leveraged yield‑farming and lending protocol on BNB Chain (Binance Smart Chain). It enabled depositors to lend capital and borrowers to open leveraged farming positions, increasing capital efficiency across AMMs and liquidity pools. (docs.alpacafinance.org)
• The ALPACA token was issued via a fair launch (no pre‑sale, no pre‑mine) and was designed to capture platform economic value through governance, revenue sharing, and buyback‑and‑burn mechanisms. (docs.alpacafinance.org)

ALPACA token utilities (what it’s used for)

• Governance: ALPACA holders can lock tokens in governance vaults to participate in protocol governance and to receive platform revenue distributions. (docs.alpacafinance.org)
• Revenue capture & deflationary mechanics: The protocol routes parts of fees (liquidation fees, lending interest shares, certain performance fees and marketplace proceeds) into buybacks and token burns or into distribution to governance stakers — mechanisms intended to align long‑term token value with protocol usage. (docs.alpacafinance.org)

Tokenomics at a glance

• Fair‑launch distribution: the team documents that the majority of supply (around 87% by original plan) was intended to be distributed to users and protocol participants, with modest vesting for the team. Exact numbers and emission schedules are available in the project documentation. (docs.alpacafinance.org)
• Supply and market data change over time; for live market caps, circulating supply, and exchange liquidity check market aggregators such as CoinGecko or CoinMarketCap. As of the latest public data, ALPACA’s circulating supply and market metrics are listed on those pages. (coingecko.com)

Recent developments you need to know (May 2025 and after)

• On May 27, 2025 Alpaca Finance announced a decision to wind down operations by the end of 2025, citing an unsustainable margin profile in a more competitive DeFi environment and business constraints after recent exchange delisting actions. The team provided timelines to allow users to withdraw assets and to perform an orderly wind‑down. This announcement materially changes risk and liquidity considerations for ALPACA holders and users of Alpaca products. (coindesk.com)
• The announcement followed a period of falling TVL, tighter revenue, and an exchange delisting that affected token liquidity and market access — factors that the team said contributed to the decision. If you hold ALPACA or had funds in Alpaca products, follow official channels for the wind‑down schedule and withdrawal instructions. (coindesk.com)

Risks and practical implications

• Liquidity & delisting risk: Delisting by major centralized exchanges can reduce liquidity and increase spreads on on‑chain markets, making it harder to exit positions quickly and at reasonable cost. Monitoring markets and using limit orders on trusted venues helps reduce execution risk. (coindesk.com)
• Protocol shutdown: During a planned wind‑down, some yield or revenue‑sharing mechanisms may stop (for example buybacks & burns), and products may be deprecated — which means expected future token revenue could decline or end. Check official announcements for specific dates and actions before making decisions. (coindesk.com)
• Smart‑contract and operational risk: Even with audits and bug bounties, DeFi carries smart‑contract risk. If you interact with Alpaca or similar protocols, confirm contract addresses from official sources and consider withdrawing funds sooner rather than later when a wind‑down is underway. (coingecko.com)

Where you can find ALPACA and how to verify listings

• ALPACA trading has historically been most active on BNB Chain DEXs like PancakeSwap as well as a handful of centralized and regional exchanges. Aggregators such as CoinGecko and CoinMarketCap list current markets and liquidity pairs — use these pages to find active trading venues and to copy the official contract address before interacting. (coingecko.com)

A short safety checklist for ALPACA holders

1. Confirm official sources: follow Alpaca’s official docs and social channels (links published on the protocol’s verified pages) for wind‑down instructions. Avoid third‑party rumors. (docs.alpacafinance.org)
2. Check the contract address: always match the token contract address from an official source (CoinGecko / the project docs) before adding tokens to a wallet or executing trades. (coingecko.com)
3. Withdraw or migrate funds as directed: if a protocol is winding down, follow the specified withdrawal windows and steps to reclaim on‑chain assets. (coindesk.com)
4. Use secure custody: store any tokens you intend to keep in long‑term custody on a reputable hardware wallet or well‑audited software wallet with secure signing. For multi‑chain tokens like ALPACA (BEP‑20), ensure your wallet supports BNB Chain and BEP‑20 tokens. (help.onekey.so)

Why hardware custody matters — brief note on OneKey

• For users who prefer cold storage, OneKey offers hardware wallet options and app integrations that support BNB Chain and BEP‑20 tokens, offline private‑key protection, and transaction parsing features to reduce blind‑signing risk. If you decide to hold ALPACA off‑exchange, consider a hardware wallet that supports the chain where your tokens exist and follow best practices for seed safekeeping. (OneKey’s product and help pages list supported chains and security features.) (onekey.so)

Final thoughts ALPACA began as a pioneering product in leveraged yield farming and built a large community and TVL during DeFi’s early growth. The May 2025 decision to wind down alters the token’s forward economics and raises immediate operational and liquidity questions. If you hold ALPACA or used Alpaca Finance products, prioritize official communications, secure custody of any tokens you retain, and act within the protocol’s withdrawal windows.

Useful references

• Alpaca Finance tokenomics and docs — official project documentation. (docs.alpacafinance.org)
• CoinDesk coverage of the Alpaca Finance wind‑down (May 27, 2025). (coindesk.com)
• CoinGecko ALPACA market page (live price, TVL and markets). (coingecko.com)
• CoinMarketCap ALPACA overview (market stats and contract). (coinmarketcap.com)
• OneKey product and support pages (hardware wallet features and BNB Chain support). (onekey.so)

If you want, I can:

• pull the latest market snapshot for ALPACA (price, circulating supply, TVL) right now, or
• walk you step‑by‑step through securely moving ALPACA into a hardware wallet (OneKey or other supported options) with exact contract addresses and transaction examples.