Balancer Discloses Critical Vulnerability Affecting Its V2 Pools

Liquidity protocol Balancer has disclosed that it has discovered a critical vulnerability that has impacted over 100 of its v2 pools spread across eight different blockchains.

The team at Balancer has posted a list of the impacted pools on its GitHub page while also activating its emergency subDAO.

Critical Vulnerability Discovered

Balancer announced the discovery of the vulnerability in a post on X (formerly Twitter), stating that it had initiated emergency mitigation features. The protocol also urged users to withdraw funds from the impacted pools.

“Balancer has received a critical vulnerability report affecting a number of V2 Pools. Emergency mitigation procedures have been executed to secure a majority of TVL, but some funds remain at risk. Users are advised to withdraw affected LPs immediately.”

The protocol stated that the issue had been mitigated in about 80% of the impacted pools. Meanwhile, the remaining 20% of the impacted pools represented around 4% of Balancer’s total value locked (TVL). Balancer stated in its forum,

“Balancer Labs received a report of a critical vulnerability affecting a number of pools. We were able to mitigate over 80% of these; the remaining funds at risk represent about 4% of Balancer TVL.”

Funds Remain Safe

The protocol also assured users that, at this point, the vulnerability had not been exploited, and all funds remained safe. Balancer added that pools labeled mitigated were safe but still urged users to migrate to safe pools or withdraw for the time being. The team also urged liquidity providers to exit their positions from impacted pools immediately. Jeff Bennett, a software engineer at Balancer Labs, said in a post,

“We believe funds in the mitigated pools (labeled ‘mitigated’) are safe, but nevertheless strongly recommend timely migration to safe pools or withdrawal. Pools that could not be mitigated are labeled ‘at risk.’ If you are [a liquidity provider] in any of these pools, please exit immediately.”

Users have heeded the warnings from the protocol following the discovery of the vulnerability. As a result of users withdrawi

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Author: Amara Khatri

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