Balancer Announces $27 Million Could Be At Risk Due to Vulnerability in DeFi Pools
Date: 2023-08-24 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
DeFi Balancer (BAL) platform disclosed a vulnerability affecting several of its pools in a statement released on August 22.
In this post, Balancer Labs stated that the vulnerability in question was not exploited and said that 80% of the issue was fixed. However, the project has acknowledged that a small amount of funds, around 4% of its total value locked (TVL), is still at risk.
Data from DefiLlama says that Balancer's TVL is currently worth $691 million, meaning roughly $27 million is at risk.
In response to this issue, Balancer's Emergency SubDAO enabled proportional exit from affected pools and paused certain pools. Balancer encouraged users to transfer funds to secure pools or withdraw their funds; He also urged liquidity providers to exit risk pools.
Balancer has experienced significant withdrawals since its announcement. Approximately $149 million has been withdrawn from TVL Balancer in the past few hours, although it is not clear if these funds have been removed from risk pools.
The project has not yet published a full disclosure of the vulnerability and has not disclosed the source from which the first report came.
DeFi platforms are at risk of exploits
Balancer has been hacked or compromised in other incidents. One attacker stole over $500,000 by targeting Balancer in 2021, according to Peckshield.
One Balancer pool also suffered from broader attacks on Euler Finance in March 2023 when Balancer suspended the affected assets and pools; While $11.9 million in funds were affected, it is not clear if that amount was ultimately lost. Balancer also exposed the exploit and advised some liquidity providers to exit the pools in January 2023.
Overall, millions of dollars have been stolen from DeFi platforms this year. One recent analysis shows that $77 billion has been stolen so far in 2023.
