Balancer suffers breach despite prior warnings; TVL falls $164M – Crypto News – Crypto News
Connect with us
Balancer suffers breach despite prior warnings; TVL falls $164M Balancer suffers breach despite prior warnings; TVL falls $164M

De-fi

Balancer suffers breach despite prior warnings; TVL falls $164M – Crypto News

Published

3 years ago

on

Decentralized exchange Balancer confirmed that its V2 pools were exploited for an undisclosed sum despite its previous warning about vulnerabilities.

In an Aug. 27 post on its official X account, the Ethereum-based protocol revealed that its mitigation procedure was able to minimize the impact of the exploit. However, users are advised to withdraw their funds from the affected pools to prevent further attacks.

Cyvers Founder Meir Dolev claimed that about $900,000 was stolen from the exploit, adding that more than $600,000 has been moved into a new address. An address linked to the hacker also contains over $979,000 worth of DAI tokens, which it received in three transactions.

On Aug. 22, Balancer said a vulnerability affecting several of its pools put about 4% of the total value of assets locked (TVL) on its platform at risk. At the time, the protocol claimed that 80% of the issue had been mitigated but urged users to remove their funds from the affected pools.

“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 an LP in any of these pools, please exit immediately,” it added.

Balancer TVL falls by $164M

Over the last seven days, Balancer’s TVL has declined by nearly 20% to $676.47 million from $840 million, according to DeFillama data. This means the DeFi protocol users have withdrawn roughly $164 million of assets from the platform since the vulnerability fears emerged.

DeFillama data reveals a rapid drop in TVL, shedding over $200 million within 24 hours, settling at $638.8 million following the protocol’s confirmation of a pool vulnerability.

Despite the protocol’s claim that it has mitigated the risks, user trust in the platform continues to wane, with a mere $38 million inflow since the incident.

Meanwhile, Balancer’s vulnerability fears emerged on the heels of an exploit on Curve that resulted in over $60 million in losses and posed a contagion threat to numerous DeFi platforms.

The post Balancer suffers breach despite prior warnings; TVL falls $164M appeared first on CryptoSlate.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending