BABL token falls by 95% as Babylon Finance announces Shut Down

Paigambar Mohan Raj
Source: Babylon Finance

Babylon Finance, an Ethereum-based asset management platform, will shut down its services on November 15th, 2022. The announcement was made by the firm’s founder, Ramon Recuero. According to Recuero, the firm could not recover from the April $80 million Rari/FEI hack.

Recuero said that the price of BABL tokens and various liquidity pools was negatively impacted, influencing the decision. BABL is the native token of the network. According to leading blockchain security company, PeckShield, BABL has fallen by 95% since the announcement of Babylon’s shutdown. At press time, BABL was trading at $0.402635, falling from nearly $5.

Babylon Finance has asked users to withdraw all funds before November 15th. Additionally, the team has published an official blog highlighting the final actions of the core team.

Rari enabled users to supply and borrow any asset from its Fuse pools to generate yield. Furthermore, users could create their pools with a selection of Ethereum-based assets, such as the tokens from Babylon. Users earn yield as compensation for trading activity on those liquidity pools.

What are Babylon Finance’s plans?

As per the official blog, Babylon will remove all liquidity from the Uniswap pool. This is to prevent people from raiding the remainder of the liquidity. Moreover, the team has noted that they have not sold any tokens. All remaining vested and unvested tokens will be returned. Strategists have until November 15th to close all active strategies. No new strategies or gardens will be made via the UI starting today.

Furthermore, the team will continue to conduct all the work required to refund all the users who had money in the gardens at the time of the hack once and if the FEI compensation is completed.

In addition, the website and Discord will also shut down on November 15th.

Nonetheless, the team has mentioned that all their code is open-source. The community is welcome to fork and build on the Babylon project and token.