Breaking: Babylon Finance is Closing Down All Operations, BABL Token Dips Over 92%
- Babylon Finance users have until November 15 to withdraw their stored assets.
- The team has announced that it will consolidate all remaining treasury holdings and distribute them amongst BABL and hBABL holders.
- The total value locked as of publication time has dropped to approximately $2.53 million, according to the company’s website.
Babylon Finance, an Ethereum-based community-led asset management protocol, has announced that it is shutting down its operations. According to a detailed medium post, Babylon Finance has not been able to recover from the Rari/FEI hack.
Despite having several investors backing Babylon Finance including Semantic Ventures, the platform was not able to recover from the Rari/FEI hack.
Following the announcement, Babylon Finance’s governance token, BABL, has lost a significant share of its value. According to our market data, the token was exchanging hands for around $0.403363, down approximately 92 percent in the past 24 hours.
Notably, the decentralized finance (DeFi) platforms Rari Capital and Fei Protocol suffered a more-than-$80 million hack earlier this year. Plans to recover the funds were futile even after offering the hacker a $10 million bounty to return the stolen assets.
Babylon Finance Final Kicks
Babylon Finance began on a high note earlier last year after completing a $1.9 million seed funding round. In the subsequent months, the platform attracted more investors and customers from around the world. Furthermore, Babylon Finance’s naive token BABL was listed in Uniswap at the tail end of 2021.
At its height, Babylon Finance was able to reach 30 million in total value locked (TVL), earlier this year. The total value locked as of publication time has dropped to approximately $2.53 million, according to the company’s website.
Forward, Babylon Finance users have until November 15 to withdraw their stored assets. Additionally, the company has announced that the website will be shut down on this date.
Otherwise, the platform has said the code is open-sourced and the community is welcome to fork or build on top of the BABL token.
As the outgoing team finalizes closing the protocol, they have outlined how to share the remaining balance.
Furthermore, the team has announced that it will consolidate all remaining treasury holdings and distribute them amongst BABL and hBABL holders. Reportedly, the process is scheduled to start on September 6th.
“In order to prevent people from raiding the remaining liquidity, we are extracting all the liquidity from the Uniswap pool. The decision is pending to be ratified by governance,” the medium post noted.
Reportedly, the Babylon Finance team intends to return all tokens, both vested and unvested to reimburse customers. Otherwise, the team has promised to reimburse their customers should the FEI protocol return the funds.
Side Notes
The DeFi lending market has been the most hit with successful attacks in the past few years. Moreover, most crypto assets are locked up in DeFi smart contracts.
Notably, most of the DeFi attacks have materialized due to weak designs of the multi-chain aspects. For instance, the Ronin Bridge attack saw hackers steal hundreds of millions of dollars.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
