Babylon Finance announced the closure of the Defi project – Bits Media

Defi Babylon Finance protocol announces closing, Since the project team could not reach the intended values ​​of the total blocked value.

The founder of the protocol of decentralized finance Babylon Finance Ramon Ramero (Ramon Recuero) explained, that a series of failures began A few months ago - in April, When was the hacking of the Rari Capital Fuse platform, And she lost more $80 million. Domino effect, caused by hacking, I got to Babylon Finance.

Reimero admitted, that as a result of hacking the protocol lost order $3.5 million. Also a total locked value (TVL) on the platform fell with $30 million to $4 million. And since the Fuse pool was abandoned, This led to a reduction in the lending market for $10 million, Says Rekueero. He played a role and a general decline in the cryptocurrency market.

The end, how the situation in the market was getting worse, Babylon Finance Babl also fell in price with $20 up to $ 6. This has naught the entire previous work of the protocol team. Financing options using BABL as a collateral are impossible. The fundraising using tokens has become impracticable due to their low price, Says Rekueero.

“Over the past few months, our team, Trying to find a way to return to previous tvl indicators, She worked completely free. According to our calculations, Babylon needed to achieve TVL in $50 million, to become self -sufficient. It didn't work out for us ".

FROM 6 On September, the Babylon team will begin to distribute the remaining assets from the company's budget between Babl and Hbabl holders. After this application, the price of BABL fell on 99%, And now the token is traded in $0.44 for pike.

Earlier EQONEX previously closed
their cryptocurrency exchange operations due to the fall of the volume of trading, intensive market competition and low margin.