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

The DeFi Babylon Finance asset management protocol will close its services on November 15, according to an announcement by its founder Ramon Recuero on August 31.

The announcement revealed that the protocol has not recovered from the $ 80 million Rari / FEI hack, with current market conditions making it difficult to recover.

The Rari / FEI hack

Prior to the Rari / EIF hack, the protocol was in a relatively strong position as it had reached a total locked down value of $ 30 million and created a top 10 loan pool on Rari.

However, the Rari / FEI exploit resulted in its investment gardens losing $ 3.4 million and its users withdrew 75% – about $ 14 million – of its TVL within two days.

Rari / FEI’s decision to cancel its repayment plans forced it to re-evaluate Rare assets to zero.

He continued that his $ 10 million loan market on Rari, Fuse, was abandoned as his native token, BABL, could no longer be used as collateral to borrow funds.

“The team lost about 3 months of track that was invested in Rari (as) funds evaporated overnight along with the ability to borrow from BABL holdings.”

The BABL token also lost more than 90% of its value over this period, plummeting from $ 20 to $ 5. According to the announcement, the collapse removed any possibility of future fundraising activity because “the token supply is limited, non-inflationary and only 10% remains in the treasury “.

It was also revealed that the team has been working without pay since the Rari / FEI hack took place.

Babylon said:

“[The hack] it has eroded our cash position, access to finance and, above all, user confidence. “

What future for Babylon Finance users?

The Babylon Finance team has revealed that it will consolidate all of its cash holdings and distribute them among the holders of BABL and hBABL starting September 6.

Babylon Finance users must also withdraw their funds before November 15th, when the website is closed.

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

The price of $ BABL plummets

Babylon Finance’s BABL token plummeted more than 92% in the previous 24 hours on the back of the announcement.

According to Coingecko data, the token’s value has dropped from over $ 5 to a low of $ 0.218851.

Data from OpenSea also showed that the NFT collection of the wealth management protocol, Babylon Prophets, has declined over the past three months. According to the data, the collection’s last sale took place on August 6 for Prophet # 629, which sold for 0.008 ETH ($ 12).

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