Decentralized finance (DeFi) protocol Babylon Finance has finally announced that it’ll shut lower after several weeks of attempting to recuperate in the negative momentum the Rari Fuse exploit caused.
Inside a statement, founder Ramon Recuero described the platform experienced an impossible negative streak despite their team’s efforts to pass through the domino effect brought on by the hack. According to Recuero, the protocol lost $3.4 million within the hack. After this, the entire value locked inside the platform went from $$ 30 million to $4 million. In addition, the Fuse pool was abandoned, detaching the lending market worth $ten million, Recuero noted.
The bearish sentiment situation within the broader crypto market also added salt for their wounds. The DeFi protocol founder stated that because the problems ensued, Babylon Finance’s native crypto token BABL also went from $20 to $6, losing several weeks of runway for that team.
Aside from these, the founder described financing options using BABL as collateral grew to become impossible. Additionally to that particular, the choice to fundraise using tokens wasn’t achievable due to its low cost. He tweeted that:
4/ During the last couple of several weeks, they has worked with no salary looking for methods to recover with this previous TVL growth.
According to our business design and charges, Babylon required to achieve 50M in TVL to get self-sustainable.
We could not make it happen.
— Ramon Recuero (@ramonrecuero) August 31, 2022
The founder also stated that like a final action using their core team, all remaining holdings of the treasury is going to be distributed to BABL and hBABL holders beginning on Sept. 6. They also stated that it’ll return all of the tokens which are both vested and unvested.
Following the announcement, the cost of BABL came by 99%, reaching a brand new all-time low of $.23 per token. During the time of writing, the token trades at $.44.
In May, attackers stole around $80 million price of assets from Rari Capital’s Fuse Platform. In the period, DeFi protocol offered a $ten million bounty reward towards the exploiters and requested these to return the stolen funds.
