Balancer, the decentralized finance (DeFi) protocol and Ethereum automated market maker, confirmed an exploit of nearly $900,000 on X (previously known as Twitter) on August 27. This comes shortly after the protocol revealed a vulnerability affecting multiple pools.
Meier Dolev, a blockchain security expert, exposed an Ethereum address allegedly associated with the attacker. After the exploit, this address received two Dai stablecoin transfers, valued at $636,812 and $257,527, totaling over $893,978.
The Balancer team communicated via X, acknowledging the exploit connected to the previously disclosed vulnerability. They noted that despite recent mitigation efforts significantly lowering the risks, it was not possible to pause the affected pools. The team advised users to withdraw from the affected liquidity providers (LPs) to avoid further exploits. On August 22, Balancer had initially revealed a critical vulnerability impacting its boosted pools, urging users to remove funds from LPs and halting pools to minimize potential harm. The vulnerability put assets on Ethereum, Polygon, Arbitrum, Optimism, Avalanche, Gnosis, Fantom, and zkEVM at risk. At the time of the vulnerability’s identification, only 1.4% of its total assets, amounting to over $5 million, were at risk. By August 24, at least $2.8 million, or 0.42% of its total value locked, remained at risk. Balancer cautioned its users on X:
“Although we believe that the funds in the mitigated pools (marked as ‘mitigated’) are secure, we still strongly recommend migrating to safe pools or withdrawing funds. Pools that could not be mitigated are marked as ‘at risk’. If you are an LP in any of these pools, please exit immediately.”
Last year in June, the protocol was implemented on the Optimism network with the goal of enhancing user functionality and reducing transaction fees.
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