DeFi protocol ceases operations after failing to recover from the Rari Fuse exploit

Decentralised finance (DeFi) protocol Babylon Finance has made the announcement that it will close its operations months after trying to make recovery from the effects caused by the Rari Fuse exploit, as reported by Cointelegraph.

According to Cointelegraph, Ramon Recuero, founder, Babylon Finance, through a statement, stated that the company went through a difficult time despite their team’s efforts to endure effects caused by the hack. As per Recuro, the protocol made losses close to $3.4 million in the hack, after which the total value locked within the platform went from $30 million to four million dollars. “The Fuse pool was abandoned, taking out the lending market worth $10 million,” Recuro mentioned.

On the basis of information by Cointelegraph, the DeFi protocol founder said that as the problems followed, Babylon Finance’s native cryptocurrency token BABL went down from $20 to six dollars. The founder explained financing options using BABL as collateral became not possible. Additionally, the fundraising option using tokens wasn’t feasible on account its low price.

Moreover, Cointelegraph noted that the founder stated that as a final call from their core team, the remaining holdings from the treasury will be distributed among BABL and hBABL holders from September 6, adding that the team plans to return all the tokens that are both vested and unvested. Post the announcement, BABL’s price dropped by 99% and reached a new all-time low of $0.23 per token. At the time of the publication’s writing, the token traded at $0.44. In May, attackers stole close to $80 million worth of assets from Rari Capital’s Fuse platform. At the time, DeFi protocol offered a $10 million bounty reward to the exploiters in return for the stolen funds.

Going by Cointelegraph’s website, it is a digital media resource covering news on blockchain, cryptocurrency assets, and emerging financial technology (fintech) trends.

(With insights from Cointelegraph)

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