July 15, 2024
Warning from Balancer DeFi Protocol: A Vulnerability Endangers $2.8 Million.
Altcoins News

Balancer DeFi Protocol Issued Warning: Vulnerability Puts $2.8 Million at Risk

Ethereum’s Balancer, a decentralized finance (DeFi) protocol functioning as an automated market maker, has raised an alarm regarding a vulnerability uncovered on August 22nd. This loophole endangers $2.8 million, corresponding to 0.42% of the total value locked (TVL) within the protocol.

According to the announcement made on August 24th, users who have linked their wallets to impacted liquidity provider pools (LPs) are strongly advised to “withdraw ASAP.” To simplify the assessment of fund safety, a specialized user interface has been established on the protocol’s website. This interface aids users in gauging whether their funds are at risk and offers step-by-step guidance for unstaking, withdrawing, and unwrapping the affected tokens.

The roster of jeopardized assets encompasses those found on different networks, including the Balancer mainnet, Polygon, Arbitrum, Optimism, Avalanche, Gnosis, Fantom, and zK-EVM.

In response to the vulnerability’s discovery, Balancer revealed that 4% of its $669 million TVL was impacted. The development team managed to rectify 80% of the critical vulnerabilities. An update on August 23rd clarified that the vulnerability had not been exploited, but funds amounting to $5.6 million remained susceptible. Developers emphasized the safety of funds in the mitigated pools and urged users to smoothly transition to secure pools or initiate withdrawals. Pools that couldn’t be rectified were categorized as at risk, and users engaged in these pools were promptly advised to exit.

Fernando Martinelli, CEO of Balancer Labs, displayed confidence in layer-2 scaling solutions, as evidenced by their deployment on Optimism. He believed that these solutions would effectively curtail transaction fees and network congestion. At that point in time, the Optimism Network had already attracted the involvement of 38 projects in total.

Image by pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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