Due to the attack on the Rari Capital DeFi project, the Babylon Finance protocol will shut down its activities. Recall that several liquidity pools involving the BABL token were affected during the attack.
Babylon Finance is shutting down
— Details on the claim process will be shared by the end of this week
— Withdraw your funds before Nov 15thhttps://t.co/dICvgxpDUF— Babylon Finance (@BabylonFinance) August 31, 2022
The team recommends withdrawing funds by November 15th. Until September 4, management will provide additional information.
The liquidation decision comes after Rari canceled a planned refund to users affected by the attack.
The total damage to Babylon Finance is estimated at $3.4 million. In the following days, its users withdrew more than 75% of their assets.
“Rari Exploit […] led to a “point of no return” for Babylon as a sustainable protocol. […] The price of BABL fell from $20 to $5, making it impossible to raise funds. The supply of tokens is limited, not subject to inflation. Only 10% remains in the Treasury,” the statement said.
Recall that Rari Capital hacked April 30. The hacker stole $80 million that was stored in his Fuse loan pools. Users could create their own variants of baskets of ERC-20 tokens, including those involving BABL.
During peak periods, TVL Babylon Finance reached $30 million. Prior to the incident, about 1,500 users contributed BABL tokens with a total value of $10 million to Rari Capital pools. This allowed the asset to enter the top 10 of the project.
The community and the market reacted nervously to the message from the project team. According to CoinGeckoover the past day, BABL has fallen in price by 92%, to $0.403.
