Balancer DeFi reports “problems” and asks LPs to remove liquidity as soon as possible

Vladislav Sopov

Blue-chip DeFi Balancer (BAL) calls on specific pools’ liquidity providers to withdraw liquidity as the team mitigates “issues.”

contents

• Balancer (BAL) team asks LPs to withdraw funds: Check out the list of pools
• Emergency multi-sig enabled, charges reduced to zero

The team at leading decentralized finance protocol Balancer (BAL) will soon reveal the roots of the problem. Meanwhile, its LPs on four blockchains should immediately remove liquidity.

Balancer (BAL) team asks LPs to withdraw funds: Check out the list of pools

According to a statement from Balancer Labs, an organization overseeing the development of Balancer (BAL) DeFi, users of five liquidity pools should remove all their funds as soon as possible.

IMPORTANT: Due to a related issue, LPs of the following pools should remove their liquidity as soon as possible as the issue cannot be mitigated by the emergency DAO. https://t.co/WcBeBvjdY2

— Balancer (@Balancer) January 6, 2023

This operation is necessary because the “Emergency DAO” cannot fix some problems with the system. Therefore, the platform is asking LPs on Ethereum (ETH), Polygon (MATIC), Optimism (OP) and Fantom (FTM) versions of Balancer (BAL) to remove liquidity.

For Ethereum (ETH), the issue affected the DOLA/bb-a-USD pool with a current total locked value (TVL) of $3.6 million in equivalent. On Polygon, LPs should remove money from the small bb-am-USD/miMATIC pool.

At Optimism (the pools here are managed by Balancer’s partners Beethoven X), the issue affects the operation of the MAI Life and Smells Like Spartan Spirit pools, with an aggregate TVL estimated at around $1.2.

Emergency multi-sig enabled, charges reduced to zero

Finally, users of Balancer’s Fantom-based “Friendly Fork” (BAL) should withdraw $1.9 million from Tenacious Dollar’s liquidity pool. Arbitrum pools will not be affected, says Balancer Labs founder Fernando Martinelli.

An hour ago, Balancer (BAL) central contributors announced that “emergency multi-signature” is zeroing out the log fees of some Balancer (BAL) pools, with no action required from their LPs.

According to DeFi Llama tracker, Balancer (BAL) is the #11 DEX by total value locked with $1.5 billion in TVL.

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