DeFi Protocol Is Terminated After The Rari Fuse Hack

After months of attempting to regain the negative momentum that the Rari Fuse exploit produced, the Decentralized Finance (DeFi) system Babylon Finance has finally declared that it will shut down.

Ramon Recuero, the platform’s founder, said in a statement that despite his team’s best attempts to withstand the hack’s domino effect, the platform had an unstoppable bad run. Recuero claims that the hack cost the protocol $3.4 million. The platform‘s overall worth was then reduced from $30 million to $4 million. Recuero observed that the Fuse pool’s abandonment, which destroyed the lending market worth $10 million, made the situation worse.

DeFi system claimed that as the issues grew

Their wounds were made worse by the general gloomy sentiment in the crypto market. The creator of the DeFi system claimed that as the issues grew, BABL, the native cryptocurrency token of Babylon Finance, also dropped in value from $20 to $6, costing the team months of development time.

In addition to these, the creator explained that it was now impossible to obtain funding using BABL as security. Additionally, the possibility of raising money through the sale of tokens was impractical because to their cheap cost. His tweet stated:

The founder said that beginning on September 6, all of their treasury’s remaining holdings will be transferred to BABL and hBABL holders as a final move from their core team. The group also declared that it will return all tokens, vested and unvested alike.

Following the announcement, the cost of BABL fell by 99%, hitting a new record-low price of $0.23 per token.

Attackers took assets worth about $80 million in May from Rari Capital’s Fuse Platform. At the time, the DeFi protocol demanded the exploiters return the stolen money in exchange for a $10 million bounty.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News