The hack of $80M Rari Capital was “the domino” that brought about the failure of DeFi Project Babylon Finance

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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.

Source: Twitter

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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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: Above are some affiliate links and we may collect a share of sales or other compensation from the links on this page.
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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