DeFi protocol shuts down months after Rari Fuse hack

BABL, the protocol's native token, fell to a new all-time low of $0.23 after the founder announced that he was stopping his operations.

Decentralized finance (DeFi) protocol Babylon Finance has finally announced its shutdown after months of trying to recover from the negative momentum caused by the Rari Fuse exploit.

In a statement, founder Ramon Recuero explained that the platform had experienced an insurmountable negative streak despite his team's efforts to endure the domino effect caused by the hack. According to Recuero, the protocol lost $3.4 million in the hack. Following this, the total value locked in the platform went from $30 million to $4 million. To make matters worse, the Fuse pool was scrapped, eliminating the loan market worth $10 million, Recuero noted.

The bearish sentiment situation in the broader crypto market has also added salt to their wounds. The founder of the DeFi protocol said that as trouble ensued, Babylon Finance's native crypto token BABL also fell from $20 to $6, losing months of trail for the team.

Apart from that, the founder explained that financing options using BABL as collateral have become impossible. On top of that, the fundraising option using tokens was not feasible due to its low price. He tweeted this:

4/ For the past few months the team has been working without pay trying to find ways to get back on track with our previous TVL growth .

Based on our business model and costs, Babylon needed to reach 50 million TVL to become self-sufficient.

We couldn't make it.

The founder also said that as his core team's final action, all remaining holdings of his treasury will be