Babylon Finance has finally announced that it will be shutting down. After months of trying to recover from the negative effects caused by the Rari Fuse attack.
In a statement, founder Ramon Recuero explainthat the platform is experiencing problems Although the team tried to withstand the domino effects caused by the hack. The protocol lost $3.4 million, and the total value of funds locked within the platform dropped from $30 million to just $4 million. To make matters worse, the Fuse pool was abandoned.
The current bear market in the crypto market is also pouring salt into their wounds. The founder of the DeFi protocol said that when a problem arose, BABL, Babylon Finance’s token, dropped from $20 to $6, losing months of money for the team.
4/ For the last few months, the team has been working without a salary trying to find ways to get back on track with our previous TVL growth.
Based on our business model and fees, Babylon needed to reach 50M in TVL to become self-sustainable.
We couldn’t get there.
— Ramon Recuero |
(@ramonrecuero) August 31, 2022
The founder also said that Final action from their core team. that is, all remaining treasury will bedistributeto BABL and hBABL holders from September 6. The team also said that all tokens will be returned.
After the announcement, the price of BABL fell 99% to a new all-time low of $0.23 per token. before trading at around $0.44
in May A hacker stole about $80 million worth of assets from Rari Capital’s Fuse Platform. At the time, the DeFi protocol offered the attackers a $10 million bounty and asked them to return the stolen money.
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