Balancer Protocol Exploited for Nearly $900,000 in Losses
Summary:
Decentralized finance protocol Balancer experiences an exploit resulting in nearly $900,000 loss. Vulnerability affecting multiple pools disclosed. Users urged to withdraw funds to prevent further damages.
Balancer, a decentralized finance protocol and automated market maker on the Ethereum network, has confirmed that it was exploited for nearly $900,000. This comes shortly after the protocol disclosed a vulnerability that affected multiple pools. A blockchain security expert, Meier Dolev, has revealed an Ethereum address allegedly belonging to the attacker. The address received two transfers of the stablecoin Dai (DAI), totaling over $893,978. Balancer's team has acknowledged the exploit and stated that while mitigation measures have been implemented to reduce risks, affected pools cannot be paused. Users are advised to withdraw from the affected liquidity providers to prevent further exploits. The vulnerability affecting boosted pools was initially disclosed on August 22, with Balancer urging users to withdraw funds and pausing pools to mitigate potential damage. The assets at risk were deployed on various networks, including Ethereum, Polygon, Arbitrum, Optimism, Avalanche, Gnosis, Fantom, and zkEVM. On the day of the vulnerability discovery, assets worth over $5 million were exposed, representing 1.4% of the total. As of August 24, $2.8 million, or 0.42% of the total value locked (TVL), were still at risk. Balancer has advised its users to migrate to safe pools or withdraw funds from at-risk pools. The protocol was deployed on the Optimism network in June of last year, aiming to enhance user functionality and reduce fees.
Published At
8/27/2023 8:45:06 PM
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