Decentralized finance (DeFi) protocol Babylon Finance has announced that it will finally close after months of trying to recover from the negative momentum created by the Rari Fuse case.
Ramon Recuero, the founder of the protocol, said that his team worked hard to try to recover from the domino effects of the cyber attack, but they witnessed a chain of negative events that were too many to handle in a row. announced. According to Recuero, the protocol also lost $3.4 million in the cyberattack. After the event, the total value locked on the platform decreased from $30 million to $4 million.
Things got worse with the abandonment of the fuse pool, and $10 million flew out of the loan market.
The general negative weather in the crypto market has made things even more difficult for the protocol. In this process, the platform’s token BABL fell from $ 20 to $ 6.
Recuero also announced that the financing options that BABL can be used as collateral are also exhausted. Due to the price of the token, the option to raise funds using them has also become unusable.
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 stated that the core team will finally distribute all remaining assets in the treasury to BABL and hBABL holders from September 6th. announced. It was stated that all assets, including those that are locked on the platform and those that are not, will also be returned.
BABL price lost 99 percent of its value after the announcement and fell as low as $0.23. The token is trading at $0.45 as of the time of translation.
In the cyber attack in May, hackers stole $80 million worth of crypto assets from Rari Capital’s Fuse platform.