Last Updated on September 2, 2022 by Bitfinsider

The creator of Babylon Finance is imparting some knowledge on how the DeFi initiative failed as the company is closing down and releasing its residual treasury assets.

The Ethereum-based project was an active asset management platform that drew on the expertise of its community for investment ideas in order to generate yield. Babylon offered a platform you could use to raise money and carry out your plan if you had an undiscovered way to benefit from the cryptocurrency markets.

Ramon Recuero, the project’s founder, was quick to note how detrimental the Rari Capital hack in April had been for Babylon, which will shut down its Discord channel and website on November 15. Although there are many reasons for the project’s demise, Ramon Recuero was quick to point out how damaging the hack had been for Babylon. “The Rari exploit was the domino that kickstarted a series of unfortunate events,” Recuero said.

Recuero’s project lost $3.4 million out of the $80 million that was stolen, wrecking the TVL and costing the team three months’ worth of operating expenses.

Additionally, the attack prevented Babylon from using Rari’s Fuse pools, which allowed users to build lending and borrowing pools for virtually any kind of commodity. As a result, the native token of Babylon, BABL, could no longer be used as security for a loan.

According to Recuero, coping with the bad market, successive crises, and finally the fallout from the Fuse hack were tremendously hard on the staff and ultimately led to burnout. Even though the attack wasn’t our responsibility, it was understandable that many were really unhappy.

All BABL and hBABL holders will get the project’s remaining treasury holdings. hBABL is a staked variant of the native token. On September 6, the distribution is anticipated to start.

The founding team will not receive any of these funds or vested tokens. Recuero remarked, “We have failed, and we need accept it. “It goes without saying that founders should not receive any funds when a project or startup fails.”

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