On August 22, Balancer announced that more than 100 of its V2 pools across eight blockchains were critically vulnerable.
Balancer, a Decentralised Finance (DeFi) protocol was exploited for nearly $900,000 on Sunday. The attack comes a few days after the protocol announced a vulnerability affecting its V2 pools.
Balancer hacked
Balancer was exploited for nearly $900k on August 27 just a few days after disclosing a vulnerability that affected several pools.
Blockchain security expert Meier Dolev revealed the Ethereum address of the hacker on X (formerly Twitter). After the attack, the address received two transfers of $636,812 and $257,527 respectively in Dai stablecoin. The total hack amounted to $893,978.
“Balancer is aware of an exploit related to the vulnerability below,” the protocol’s team posted on X, adding that while mitigation measures taken in recent days had drastically reduced risks, affected pools could not be paused. “To prevent further exploits, users must withdraw from affected LPs,” it advised.
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On August 22, Balancer announced that more than 100 of its V2 pools across eight blockchains were critically vulnerable. It said that it had mitigated the vulnerabilities in around 80% of the impacted pools. And the remaining 20% represented a measly 4% of Balancer’s total value locked (TVL).
“We believe funds in the mitigated pools (labeled ‘mitigated’) are safe, but nevertheless strongly recommend timely migration to safe pools, or withdrawal,” Jeff Bennett, a software engineer at Balancer Labs, wrote in a post.
A sizeable amount of about $2.8M (0.42% of the entire value locked) was still at risk as of August 24.
The protocol, which aimed to improve user functionality and lower fees, went live on the Optimism network in June of last year.
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