According to a statement released on August 31 by Babylon Finance’s founder Ramon Recuero, the business will cease providing asset management protocol DeFi services on November 15.
Wednesday night, Ramon Recuero, the founder of Babylon Finance, announced the decision through Twitter. The software developer said that the protocol for asset management will be discontinued in November of this year.
He said that the recent bear market has further aggravated the platform’s issues. Recuero followed by emphasising the damage caused by the hack on Babylon Finance.
As a consequence, the total value locked (TVL) of the protocol falls from $30M to $4M. In addition to terminating Babylon Finance’s lending platform Fuse, the breach caused its native coin BABL to collapse. Recuero believes that they significantly aggravated already prevalent bearish tendencies in the environment.
The Ethereum-based project was an active asset management platform that relied on the investing skills of its community to produce returns. If you had an unknown method for profiting from the bitcoin markets, you might utilise Babylon’s platform to gather funds and execute your strategy.
“The Rari exploit was the first domino in a chain of tragic occurrences,” stated Recuero. Prior to the Rari/FEI hack, the protocol was in a favourable position since it had built a top 10 lending pool on Rari and acquired a total locked value of $30 million.
However, the Rari/FEI exploit led its investment gardens to lose $3.4 million, and within two days, 75%, or about $14 million, of its TVL was withdrawn by consumers.
Rari/FEI was required to reprice the Rari assets to zero as a result of its decision to terminate its reimbursement agreements.
According to the announcement, the $10 million lending market on Rari, Fuse, was halted because its native token, BABL, could no longer be utilised as collateral for loans.
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