Balancer Protocol Warns of Vulnerability: $2.8 Million at Risk
Summary:
Blockchain protocol Balancer warns that a vulnerability detected has put $2.8 million, or 0.42% of its total value locked, at risk. Users are urged to withdraw their funds immediately from affected liquidity provider pools. The vulnerability has not been exploited, but precautionary measures are advised to ensure safety.
Blockchain protocol Balancer has issued a warning stating that a vulnerability discovered on August 22 puts $2.8 million, or 0.42% of its total value locked (TVL), at risk. Users are urged to withdraw funds as soon as possible if they have connected wallets to affected liquidity provider pools (LPs). A user interface has been implemented on the protocol's website to assist users in determining if their funds are in jeopardy, and it advises them to unstake, withdraw, and unwrap the affected tokens. Assets at risk include those on various networks such as Balancer mainnet, Polygon, Arbitrum, Optimism, Avalanche, Gnosis, Fantom, and zK-EVM. Balancer reported that 4% of its $669 million TVL was affected on the day the vulnerability was discovered, but developers were able to mitigate 80% of the issue. In a recent update, Balancer confirmed that the vulnerability had not been exploited, but $5.6 million worth of funds are still at risk. Users are strongly advised to migrate to safe pools or withdraw funds, with the mitigated pools labeled as "safe" and the ones that could not be mitigated labeled as "at risk". In June, Balancer launched on the Ethereum layer-2 network Optimism, with CEO Fernando Martinelli expressing confidence in layer-2 scaling solutions to reduce transaction fees and network congestion. Currently, over 98.7% of initially vulnerable liquidity has been secured, but the remaining 0.42% ($2.8 million) is still at risk, prompting users to follow the provided user interface and withdraw their funds immediately.
Published At
8/24/2023 4:00:00 PM
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