The Babylon Finance protocol will wind down its operations due to an attack on the DeFi project Rari Capital, in which several liquidity pools involving the BABL token were affected.
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
Clients were advised to withdraw funds by November 15. The team will return the remaining assets in the coming weeks. Management will provide further information by September 4.
The decision was made after Rari canceled the planned reimbursement to users affected by the attack.
The loss to Babylon Finance amounted to $3.4 million. In the following days, its users withdrew more than 75% of their assets.
The Rari exploit […] led to a “point of no return” for Babylon as a sustainable protocol. […] The price of BABL fell from $20 to $5, depriving it of the ability to attract funds. The token supply is limited, not inflationary. Only 10% remains in the treasury— the statement says.
The project team aimed to restore TVL through user fees. TVL.
The Babylon Finance management fee is 0.5% of AUM. The protocol also charges a 5% performance fee on the profits from operations collateralized by BABL provided by users.
To continue operations, the TVL must be at least $50 million, the team noted.
Rari Capital was hacked on April 30. The attacker withdrew $80 million stored in its Fuse lending pools. Users could create their own baskets of ERC-20 tokens, including BABL.
At the peak, Babylon Finance’s TVL reached $30 million. Before the incident, about 1,500 users deposited BABL tokens worth $10 million into Rari Capital pools. This allowed the asset to enter the project’s top 10.
The market reacted nervously to the project team’s message. According to CoinGecko, in the last 24 hours BABL fell 92%, to $0.403.
In the first half of 2022 hackers stole assets worth nearly $1.97 billion from crypto projectsактивы на $1,97 млрд.
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