Over $200,000,000 withdrawn from balancer pools (BAL) after project disclosed ‘critical vulnerability’

The total value (TVL) locked on Balancer (BAL) fell by more than $200 million in 24 hours after the decentralized finance (DeFi) protocol advised users to withdraw liquidity as a precaution.

In a post on the social media platform

“Balancer has received a critical vulnerability report affecting a number of V2 pools.

Contingency mitigation measures have been implemented to secure much of the TVL, but some funds remain at risk.

Users are advised to retire affected LPs immediately.”

According to Balancer, while only 1.4% of total TVL is at risk, some pools are being paused and users are being asked to take action.

“We believe the funds in the tempered pools (labeled “mitigated”) are safe, but strongly recommend timely migration to safe pools or withdrawal. Pools that could not be disarmed are marked as “at risk”. If you are LP in any of these pools, please exit immediately.”

Following the announcement, TVL on Balancer fell from $840 million on August 22 to $630 million on August 23.

Balancer has now secured most of the funds. The total value of the log is now almost $669 million.

“Thanks to the quick action of the Balancer LPs, over 97% of the liquidity originally classified as at risk is now SECURE.

The vulnerability has not been exploited, however 0.89% of the total TVL ($5.6M) remains at risk and users are advised to withdraw their withdrawal via the UI (UI) as soon as possible.”

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