UPDATE : According to this it's because Celsius is dumping their BNT and simultaneously shorting it at FTX

https://twitter.com/MikeBurgersburg/status/1538686938630307846

I'm not sure how to feel about Celsius day trading to try to make up losses.

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Talk live right now

https://twitter.com/i/spaces/1RDGlgrVoWOKL/peek

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Blog Post

https://blog.bancor.network/market-conditions-update-june-19-2022-e5b857b39336

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Due to hostile market conditions, Bancor’s Impermanent Loss Protection is temporarily paused. IL protection will be reactivated on the protocol as the market stabilizes. This is a temporary measure to protect the protocol and its users.

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​ They are effectively penalizing current withdrawals...

Withdrawals performed during this unstable period will not be eligible for IL protection. Users who remain in the protocol will continue earning yields and be entitled to withdraw their fully-protected value when IL protection is reactivated.

Deposits are currently not accepted to prevent confusion via direct contract interaction where the information on paused protection is not visible.

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To save their treasury from going bust

The need to pause IL protection is a result of the recent sell-off of rewards emissions that were accumulated over the last 18 months. BNT rewards effectively have a double-cost:

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This stress-test of the protocol has demonstrated that there is a heightened risk of generic liquidity mining campaigns on Bancor — something that Bancor 3 was designed to ameliorate. The Bancor DAO has recently voted to discontinue BNT rewards on mainstay pools in Bancor V3. Without these unnecessary incentives, pools on the network can accrue organic yield from real user activity — and since the decision to reduce BNT rewards, most tokens on the network have been driving attractive protected APRs from trading fee income alone.

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As we wait for markets to stabilize, we are investigating the best methods to restore IL protection. An interim report will be issued and the Bancor DAO will be asked to vote on ratifying the temporary pause.

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TL;DR: Issuing reward tokens to boost APY tends to blow up in a bear market.

Of course they're not the only DeFI dapp making sudden changes during market turmoil, check out my comment on Solend, Maker and AAVE here

https://np.reddit.com/r/CryptoCurrency/comments/vfszpt/solend_the_largest_lending_market_on_solana_is/icxunio/?context=3