Balancer Secures Over 80% of Funds at Risk After Vulnerability Report
Liquidity providers in over 100 of its V2 pools across eight chains asked to withdraw immediately.
- Roughly $10M remain at risk.
- Balancer quickly secured over 80% of funds.
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Balancer, a DeFi lending pioneer, received a vulnerability report a few hours ago that found over 100 of its V2 pools are at risk. The team quickly secured over 80% of the funds, but roughly $10 million remains at risk. The team requested users to withdraw or migrate to a safe pool immediately.
Balancer boasts a Total Value Locked (TVL) of over $650M, and roughly $10 million, or 1.4% of the entire TVL, is at risk, according to Balancer.
The majority of funds on Balancer are safe.
Only 1.4% of the total TVL is at risk, and only boosted pools are affected.
Several pools are paused to mitigate risks and will remain so, with users advised to withdraw liquidity as soon as possible.https://t.co/xcT1OfALs2
— Balancer (@Balancer) August 22, 2023
In response to this incident, the Balancer created an Emergency SubDAO that paused the pools, and now users can only withdraw from pools. The Emergency SubDAO has a 4-7 multi-sig that allows them to “kill” pools under such circumstances.
The BAL token is down 4% in the last 24 hours, trading at $3.44, according to data from CoinGecko.