Babylon Finance Is Shutting Down, Distributing Remaining Treasury Holdings, and Its Founders Are Sharing Some Lessons How DeFi The project went belly up.
Ethereum-based project was an active asset management platform that Source: Investment strategies from members of your community to earn yields. If you had a clear idea of how to make a profit in the crypto markets, Babylon had a platform you could leverage to raise capital and execute that idea.
While the reasons for its demise are numerous, project founder Ramon Riquero was quick to point out just how damaging the Rari Capital hack in April was for Babylon, which will shut down its Discord channel and website on November 15.
“The Rari exploit was the domino that kickstarted a chain of unfortunate events,” he wroteAnnouncement of the closure of Babylon.
Of the $80 million stolen, Recuero’s project lost $3.4 million, which Ditch Total Value Locked (TVL) of the project and three months operating cost of the team.
The hack also meant that Babylon could no longer use Rari’s Fuse Pool, which lets users create lending and lending pools for almost any type of asset. Therefore, BABL, Babylon’s native token, can no longer be used as collateral to borrow funds.
These incidents culminated in burnout, said Riquero, who wrote, “Dealing with the bear market, one crisis, another, and, finally, the aftermath of the Fuse hack was extremely taxing for the team. Obviously, people got really angry. Even if the hack was not our fault.
Babylon Finance did not immediately respond decryptComment request.
What can users of Babylon Finance expect?
All holders of BABL and hBABL (a staking version of the native token) will be given the remaining Treasury holdings of the project. Delivery is expected to begin on September 6.
None of these funds, nor any vested tokens, will go to the founding team. “We have failed and we need to admit it,” Raquero wrote. “It goes without saying that when a project/startup fails, the founders should not receive any funding.”
However, it remains to be seen whether Babylon users will see any of the money lost from the Raari hack. a recent government defeatWhat previously agreed to provide full reimbursement has now flipped completely after a controversial vote.
If reimbursed, the Babylon team will ensure that its users are whole.
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