- Over $100 million has been withdrawn from Balancer due to a critical vulnerability alert that prompted a rush of withdrawals
- The vulnerability was found in Balancer’s high-interest-paying boosted pools, leading to lockdown measures and suspension of many pools to prevent potential draining.
- While the project assured no funds had been stolen, about 1.4% of the TVL, approximately $10 million, remains at risk
More than $100 million has been withdrawn from leading DeFi project Balancer after it alerted certain customers to a critical vulnerability. The news prompted a rush of withdrawals due to the risk of tens of millions of dollars in crypto being compromised, with the protocol’s Total Value Locked (TVL) dropping by nine figures in response to the withdrawal frenzy. The protocol has since assured users that no funds have been stolen.
“Please Exit Immediately”
The vulnerability was discovered in Balancer’s high-interest-paying boosted pools, causing the protocol to enter lockdown and suspend many pools to prevent potential draining. A post on the Balancer forum described the issue and informed users of what to do:
We believe funds in the mitigated pools (labeled “mitigated”) are safe, but nevertheless strongly recommend timely migration to safe pools, or withdrawal. Pools that could not be mitigated are labeled “at risk”. If you are an LP in any of these pools, please exit immediately.
Some pools remained vulnerable, with users still asked to withdraw funds in order to secure them. Approximately 1.4% of the TVL, roughly $10 million, is still at risk, although at least 80% of assets have been secured through emergency actions.
No Funds Stolen
Despite the incident, Balancer’s response group assured that no funds had been stolen, and the project contributors plan to release a post-mortem after the situation stabilizes. The BAL token’s value experienced a slight drop to around $3.44 from its previous level of $3.55 following the disclosure.
Balancer suffered a hack in June 202 which saw $500,000 stolen, and clearly the project does not want a repeat.
