Alpaca Leveraged Yield FarmingMicro-cap
Elevated risk — winding-down protocol with historical oracle failures and inherent leverage-amplified liquidation risk.
Top Risks
1
Protocol announced wind-down by end of 2025 with declining operations, raising significant counterparty and continuity risk for remaining users.
2
Historical oracle failure allowed $2.8M in losses when THENA price volatility was not reflected, exposing systemic oracle surface risk in leveraged positions.
3
Leveraged yield farming amplifies liquidation cascade risk during correlated market downturns, compounding losses beyond initial collateral.
Risk Breakdown
Frequently Asked Questions
Is Alpaca Leveraged Yield Farming safe to use?
Alpaca Leveraged Yield Farming receives a C- risk grade (57/100) from Hindenrank, where lower scores indicate lower risk. Elevated risk — winding-down protocol with historical oracle failures and inherent leverage-amplified liquidation risk. Alpaca Finance is a leveraged yield farming protocol on BNB Chain that lets users amplify DEX LP positions up to 7x by borrowing from lending pools. With $31M TVL remaining, the protocol announced a wind-down by end of 2025 after experiencing declining usage from its $900M peak. A C- risk grade reflects a significant oracle failure that caused $2.8M in losses and the inherent danger of leveraged positions during volatile markets.
What are the main risks of using Alpaca Leveraged Yield Farming?
The key risks identified for Alpaca Leveraged Yield Farming are: (1) The protocol has announced plans to shut down, meaning active development, monitoring, and support may cease — increasing the risk of unresolved issues for remaining users. (2) Leveraged farming amplifies both gains and losses; a sudden market drop can liquidate positions faster than users can react, potentially losing their entire deposit. (3) A past oracle failure allowed attackers to drain $2.8M from lenders when prices were not updated quickly enough, and similar vulnerabilities could still exist for other supported tokens.
What is Alpaca Leveraged Yield Farming's risk score breakdown?
Alpaca Leveraged Yield Farming scores 57/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 12/20, Oracle Surface: 7/10, Documentation Gaps: 4/10, Track Record: 15/15, Scale Exposure: 3/10, Regulatory Risk: 4/10, Vitality Risk: 6/10. The highest risk area is Track Record at 15/15.
How does Alpaca Leveraged Yield Farming compare to other Yield protocols?
Among 112 rated Yield protocols on Hindenrank, Alpaca Leveraged Yield Farming ranks #112 by safety (lowest risk score = safest). Its 57/100 risk score and C- grade place it among the riskier Yield protocols.
Has Alpaca Leveraged Yield Farming ever been hacked or exploited?
Alpaca Leveraged Yield Farming scores 15/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.
Last scanned 2026-02-18