The Babylon Finance protocol will cease operations due to an attack on the Rari Capital DeFi project that caused several liquidity pools affected by the BABL token.

Customers were advised to withdraw funds by November 15. The team will return the remaining assets in the coming weeks. By September 4, management will provide additional information.

The decision came after Rari canceled a scheduled refund to users affected by the attack.

Babylon Finance’s loss was $3.4 million. In the following days, its users withdrew more than 75% of their assets.

“Rari Abuse […] As a sustainable protocol, it led to a “point of no return” for Babylon. […] The price of BABL dropped from $20 to $5, making it impossible to raise funds. The token supply is limited, not subject to inflation. Only 10% remains in the treasury”, – says message.

The project team tried to restore at the expense of users commissions TVL.

Babylon Finance management fee 0.5% AUM. The protocol also charges a success fee of 5% of the revenue from transactions where user-provided BABLs are used as collateral.

The team noted that the TVL indicator must be at least $50 million to continue activity.

Rari Capital was hacked on April 30. The attacker withdrew $80 million stored in Fuse loan pools. Users can create their own assortment of ERC-20 coin baskets, including those featuring BABL.

At its peak, TVL Babylon Finance reached $30 million. Prior to the event, around 1,500 users donated BABL tokens with a total value of $10 million to the Rari Capital pools. This allowed the asset to enter the top 10 of the project.

The market reacted nervously to the message from the project team. According to CoinGecko, the BABL price has dropped 92% in the last 24 hours to $0.403.

Recall that in the first half of the year, hackers stole $1.97 billion worth of assets from crypto projects.

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