DeFi Asset Management Protocol Babylon Finance has issued a statement saying that it will be shutting down its services on November 15.
This comes after the company failed to recover from the $80 million RI/FEI hack that took place in April this year.
Babylon Finance is closing
– Details on the claim process will be shared by the end of this week
– Withdraw your money before November 15https://t.co/dICvgxpDUF— Babylon Finance (@BabylonFinance) 31 August 2022
rari/fei hack
Before the RARI/FEI hack, Babylon Finance was fully functional and had established a top 10 lending pool on RARI, a protocol that allows users to supply and borrow any assets from their fuse pool to generate yields. allows to take.
Rari users can create pools with a selection of Ethereum-based digital assets, such as Babylon Finance’s native token, BABL, and other users can contribute funds to those pools to receive rewards. At its peak, Babylon Finance held $30 million worth of various cryptocurrencies on Rari and was one of the top lending pools on Rari. $10 million worth of assets were supplied by users.
The Rari/FEI hack caused the protocol $3.4 million, and over the next two days, customers withdrew 75% of TVL.
Following the exploitation, Babylon’s $10 million loan market on Rari, Fuse, was suspended because Babble could no longer be used as security in borrowing funds on Rari.
Babylon Finance Token, BABL
Following the news, the BABL token has lost over 91% in price over the past 24 hours and is currently trading at $0.4563 according to Coinnmarketcap.
According to a press release by Babylon Finance:
“As the token supply is limited, non-inflationary, and only 10% remains in the treasury, the decline has eliminated any possibility of further fundraising initiatives.”
The Babylon Finance team has said that starting September 6, the firm will distribute all of its Treasury holdings together to BABL holders. In addition, members of Babylon Finance must withdraw their money before November 15.