Summary
- The value of the BAL token has gone down.
- The customers who had placed their money in the Balancer V2 pools have been advised to withdraw their money.
The Balancer protocol became susceptible to vulnerability on the 22nd of August and this led to the V2 pools that work behind it being affected negatively. There was a huge risk for the customers as they stood to lose millions of dollars from this outcome. The developers of the protocol became aware of the glitch in their V2 pools on the same date. As a result of this, the Bal token holders called for a lockdown, and the holders were instructed to withdraw their money.
NOTE:
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
Also Read: Ethical Hacker Recovers $5.4 Million in Stolen ETH to Curve Finance Amid Recent DeFi Hack
According to a post on X (formerly Twitter), only 1.4% of the Total Value Locked (TVL) was at stake and the pools that are at risk are the boosted ones.
The 1.4% of the TVL was amounting to 10$ million. It was not just the V2 pools that were affected though wstETH and stMATIC pools also fell victim to attacks. Lucky for the users, Lido took to X to announce for them to withdraw their money.
Balancer has received a report of a critical vulnerability affecting certain pools, including a few (w)stETH and stMATIC pools.
Users are advised to withdraw liquidity ASAP. https://t.co/ogEobqGd56
— Lido (@LidoFinance) August 22, 2023
Current State Of The Balancer Protocol
The code commits on the Balancer GitHub showed reduced activity at the time of writing. It, therefore goes without saying that the security of the pools may have been compromised.
Token Terminal revealed that code commits on the protocol were summing up to 24.4% within the past week. The TVL also went down by 9% in the past week. The value of the BAL token went down as well last week indicating that the rate at which the token was being traded had gone down as well.
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