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Babylon Finance had to close after a hack.

Babylon Finance had

The most recent asset manager to stop providing its services is Babylon Finance, however there is something unique about this asset manager's motive for doing so.

 Using a previous disastrous event as justification, the asset management platform just announced its intended shutdown. The Crypto Winter also contributed.

The Rari Hack's effects caused the ecosystem to become pessimistic.

The decision was announced on Twitter in the wee hours of Wednesday by Ramon Recuero, the founder of Babylon Finance. The asset management protocol would finally be terminated in November of this year, according to the software engineer.

He added that the platform's problems have also been exacerbated by the ongoing bear market. Recuero continued by highlighting the harm the hack had caused on Babylon Finance.

One result is the protocol's total value locked (TVL) dropping from $30M to $4M. Damage from the breach also includes the termination of Babylon Finance's lending platform Fuse and the collapse of its native cryptocurrency BABL. Recuero thinks that they greatly exacerbated bearish attitudes already present in the environment.

Recuero listed some of the steps the Babylon team will be taking before the eventual shutdown in an article. All remaining treasury holdings would be distributed to BABL and hBABL holders by the team. On September 6, the distribution procedure will start. Additionally, investors will receive their tokens back. Additionally, the group will withdraw all of the liquid assets from Uniswap.

The group has also given each strategist till November 15 to complete their plans. The article claims that day will see the closure of both the Babylon Finance website and Discord server.

In the Rari Hack, Babylon Finance lost almost $3 million.

On April 20, there was a hack at Rari Capital, and approximately $80M was taken. Rari Capital is a platform for DeFi lending and borrowing. Clients have the option to lend and borrow assets through its Fuse pool, with favourable yield-generating terms. Unfortunately, Babylon Finance had a number of assets on Rari Capital valued up to $30M.

Rari cancelled its intended compensation to the affected users, which resulted in a cost to Babylon Finance of nearly $3M. The problems for Babylon Finance began with this. Following the hack, customers of Babylon Finance withdrew large amounts of their assets from the protocol. This was a result of the developing panic. The platform's native coin also experienced a fall of more than 70%.

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