Alpaca Finance Institutional Newsletter #112

Alpaca Finance, a pioneering leveraged yield farming protocol on BNB Chain, has announced its shutdown. Key points: - All products will begin sunsetting, with new positions disabled by early June 2025 - Users must close positions by June 30, 2025; remaining positions will be automatically closed - Front-end will remain accessible until December 31, 2025 for withdrawals - Decision driven by declining yields, Binance delisting, and evolving DeFi landscape - Protocol operated at loss for 2+ years despite team downsizing **Important Dates:** - June 2025: New positions disabled - June 30: AF1.0 & Alperp closure - July 30: AF2.0 closure - December 31: Front-end shutdown

A federal judge has authorized the DOJ to sell 69,370 Bitcoins seized from Silk Road, marking the government's largest crypto confiscation. The U.S. Marshals Service typically auctions seized crypto, with recent wallet activity suggesting preparation for sale. The UK Treasury has modified regulations to exclude crypto staking from collective investment scheme classification. Effective January 31, the change recognizes staking as blockchain validation rather than investment pooling, providing regulatory clarity. A NY court granted Coinbase's request for interlocutory appeal, temporarily pausing SEC litigation. This allows review of Howey Test application to crypto-assets, after SEC alleged Coinbase operated as an unregistered exchange.

Alpaca Finance has completed its 199th weekly buyback and burn, removing 8,888 $ALPACA tokens (~$1.4k) from circulation. Key metrics: - 118 out of 124 weeks were deflationary - Total burned: 34.62M+ tokens (18.41% of supply) - Cumulative user revenue distribution: ~$4.24M The protocol maintains consistent weekly burns of 8,888 tokens, demonstrating sustained deflationary pressure over a 2-year period. View detailed burn statistics in the [public spreadsheet](https://docs.google.com/spreadsheets/d/1p575wd1bbkNsd31Ic25sKnyIKhf5SM_xaqDkUbru46M/edit#gid=0).