Babylon Finance –decentralized finance (DeFi) protocol – has ultimately declared to stop its operations following making efforts for months to get rid of the negative impact originated by the exploit that was targeted at Rari Fuse. Ramon Recuero, the founder of the platform, stated that the venue went through an irreversible negative influence notwithstanding the efforts of their team to sustain the disastrous effect made by the respective exploit.
Babylon Finance Finally Decides to Shut Down after Months of Struggle
As per Recuero, a cumulative sum of nearly $3.4M has been lost by the protocol in the exploit. After that, a considerable drop took place in the platform’s total value locked taking from $30M to just $4M. That was not all, the Fuse pool got deserted, resulting in the exclusion of nearly $10M, as noted by Recuero. In addition to this, the overall bearish scenario of the lending market in the crypto space has played a significant role to worsen matters.
The founder of the DeFi protocol mentioned that as the issues arose, BABL (the local crypto token of Babylon Finance) additionally declined from $20 to $6, being deprived of the progress made the in several months. Along with this, the founder elaborated that it turned impossible to utilize BABL in the form of collateral. Moving on, the option of fundraising with the utilization of the tokens also became unprofitable due to the low price.
He added that the team of the protocol has been operating without any salary for some recent months to pursue the methods to restart the TVL growth. In his words, there was a requirement for Babylon to touch on a TVL of 50 million to turn into a self-sustainable project nonetheless they were not fortunate to witness that.
BABL Token Plummets by 99%
According to him, an ultimate action – after the discussion between the members of the team – would be that the entirety of the remaining treasury holdings of the venue will be disseminated to hBABL and BABL holders from 6th September onwards. The team of the protocol additionally asserted that the entirety of the unvested and vested tokens will be returned to the holders.
Following this declaration, a drop of 99% was seen in the BABL token’s price, placing it at almost $0.23. At the moment, the trading value of the token is $0.44.