What you need to know:
Ethereum automated market maker and DeFi protocol Balancer has issued a warning that $2.8 million, representing 0.42% of its total value locked (TVL), is still at risk following the discovery of a vulnerability.
The details:
Balancer announced on August 24th that users should "withdraw ASAP" if they have connected wallets to affected liquidity provider pools (LPs). To assist users in determining if their funds were at risk, a personal user interface was created on the protocol's website, which advises users to unstake, withdraw, and unwrap the affected tokens.
The assets affected include those on the Balance mainnet, as well as Polygon, Arbitrum, Optimism, Avalanche, Gnosis, Fantom, and zK-EVM.
On the day the vulnerability was discovered, Balancer reported that 4% of its $669 million TVL had been affected. However, developers were able to mitigate 80% of the critical vulnerability. In a later update on August 23rd, Balancer clarified that the vulnerability had not been exploited, but $5.6 million worth of funds were still at risk. They urged users to exit immediately if they were LPs in pools labeled "at risk."
Balancer Labs CEO Fernando Martinelli previously stated that the deployment of Balancer on the Ethereum layer-2 network Optimism was a reflection of his belief that layer-2 scaling solutions would effectively reduce transaction fees and network congestion. At the time, there were 38 projects building on the Optimism network.
What they're saying:
The official Balancer Twitter account stated, "Over 98.7% of liquidity initially deemed vulnerable is now SAFE. As of writing, the vulnerability has not been exploited. However, 0.42% of total TVL ($2.8 million) remains at risk, with users advised to withdraw ASAP using the UI."
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