Babylon Finance to shut down Nov. 15 after failing to recover from Rari/FEI hack

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DeFi Asset Management Protocol Babylon Finance will shut down its services on November 15 Announcement by its founder Ramon Riquero on 31 August.

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The announcement revealed that the protocol did not recover from the $80 million hack RI/FEI, with current market conditions making it difficult to bounce back.

rari/fei hack

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Prior to the RARI/FEI hack, the protocol was in a relatively strong position as it reached a net worth of $30 million and created a top 10 lending pool on RARI.

However, its investment plantations lost $3.4 million as a result of the RI/FEI exploitation, and its users withdrew 75% of their TVL – about $14 million – within two days.

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RI/FEI’s decision to cancel its reimbursement plans forced it to revalue RI’s assets to zero.

It continued that Rari, its $10 million lending market on Fuse, was abandoned as its native token, BABL, can no longer be used as collateral to borrow funds.

“The team lost ~3 months of runway that was invested in the Rari (AS) fund, which evaporated overnight with the prospect of borrowing from BABL Holdings.”

The BABL token also lost over 90% of its value within this period, falling from $20 to $5. According to the announcement, the crash has removed any possibility of future fundraising activities as “the token supply is limited, non-inflationary, and only 10% remains in the treasury.”

It was also learned that the team is working without pay since the RIRI/FEI hack.

Babylon said:

,[The hack] Destroyed our cash position, access to financing, and most important, user trust. ,

What’s next for Babylon Finance users?

The Babylon Finance team revealed that it will consolidate all of its Treasury holdings and distribute them between BABL and hBABL holders starting September 6.

Users of Babylon Finance will also have to withdraw their money before November 15th – when the website is shut down.

Meanwhile, the protocol has removed all available liquidity in its Uniswap v3 pool to prevent its draining during the liquidation process.

$BABL value crashes

Following the announcement, Babylon Finance’s BABL token is down by over 92% in the past 24 hours.

Coingecko. According to informationThe value of the token fell from over $5 to as low as $0.218851.

OpenC data also showed that NFT collections for asset management protocol, Babylon Prophet, have declined over the past three months. according to informationThe last sale from the collection took place on August 6th for Prophet #629, which sold for 0.008 ETH ($12).





Credit : cryptoslate.com

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