Is Alpaca Finance 2.0 Safe?
Risk Grade: C (47/100)
Alpaca Finance 2.0 is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Elevated risk — functional lending protocol undermined by announced shutdown, token delisting, and uncertain future maintenance.
Alpaca Finance 2.0 is the V2 money market on BNB Chain offering over-collateralized lending with leveraged yield farming up to 6x. However, the parent protocol announced a full shutdown by end of 2025, and the ALPACA token was delisted from Binance. While $12M remains in TVL, the protocol's future operational support is highly uncertain.
TVL
$12M
Mechanisms
7
Interactions
5
Value Grade
D-
Key Risks for Alpaca Finance 2.0 Users
The parent protocol announced shutdown by end of 2025 and ALPACA was delisted from Binance — operational continuity is uncertain
Leveraged yield farming up to 6x means positions can be liquidated rapidly during downturns with potential total loss
Without ongoing team maintenance, oracle feeds and risk parameters may become stale, increasing bad debt risk
Top Risk Factors
- •Parent protocol Alpaca Finance announced full shutdown by end of 2025, raising serious continuity concerns for the V2 money market
- •Binance delisted ALPACA token in May 2025, severely restricting liquidity and governance token value
- •Leveraged yield farming up to 6x amplifies liquidation cascade risk during market downturns
- •Protocol experienced 94% TVL decline from $900M peak, indicating significant user confidence erosion
Risk Score Breakdown
Alpaca Finance 2.0's highest risk area is Track Record (15/15). Here's how each dimension contributes to the overall 47/100 score:
Read the Full Alpaca Finance 2.0 Risk Report
This protocol has 2 collapse scenarios. 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
View Full Report →Considering an investment?