Balancer V2 Pools Face Vulnerability, Customers Are Advised To Withdraw Their Investments – NewsTo
Balancer V2 Pools Face Vulnerability, Customers Are Advised To Withdraw Their Investments

Balancer V2 Pools Face Vulnerability, Customers Are Advised To Withdraw Their Investments


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.

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.

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.

Balancer V2 Pools Face Vulnerability, Customers Are Advised To Withdraw Their Investments
Source: Token Terminal

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.

Balancer V2 Pools Face Vulnerability, Customers Are Advised To Withdraw Their Investments
Source: Santiment

Also Read: Sentiment DeFi Platform Lost $1 Million To A Hacker On Arbitrum



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