Balancer Losses Nearly $900k In An Exploit Following A Vulnerability Warning

TL;DR

• Balancer was exploited for roughly $900k after disclosing a vulnerability that affected several pools.

• Its native coin is up by 1% in the last 24 hours despite the recent exploit.

Balancer Losses Roughly $900k In An Exploit

Balancer informed its community members via X (formerly Twitter) on Sunday that it was exploited for nearly $900,000.

This latest development comes a few days after the Ethereum automated market maker and decentralized finance protocol disclosed a vulnerability that affected several pools.

Balancer is aware of an exploit related to the vulnerability below.

Mitigation procedures have drastically reduced risks, but are unable to pause affected pools.

To prevent further exploits, users must withdraw from affected LPs.https://t.co/PDzX32gqeS https://t.co/b4CSqVFbDg

— Balancer (@Balancer) August 27, 2023

The blockchain security expert Meier Dolev revealed an Ethereum address allegedly belonging to the attacker. The address received two transfers of DAI following the exploit. 

The expert revealed that DAI stablecoins worth around $636,812 and $257,527, respectively, were transferred to the account, bringing its total balance to over $893,978.

The Balancer team stated that it is aware of an exploit related to the vulnerability it posted last week. They have taken mitigation measures in recent days to reduce the risk, but the affected pools could not be paused. As such, users must withdraw their funds from the affected LPs to prevent further exploits. 

Balancer disclosed the vulnerability last week and advised users to withdraw funds from liquidity providers (LPs)  to mitigate potential damage. Some of the assets at risk are deployed on Ethereum, Polygon, Arbitrum, Optimism, Avalanche, Gnosis, Fantom and zkEVM.