Connect with us
Active Currencies 14309
Market Cap $2,518,327,004,216.30
Bitcoin Share 51.77%
24h Market Cap Change $0.35

Vulnerability affects Balancer V2 pools, what about your tokens?

2min Read

As Balancer protocol’s vulnerability gets exposed, users are advised to withdraw their funds from the affected V2 pools. The price of BAL token takes a hit, declines further.

Vulnerability affects Balancer V2 pools, what about your tokens?

Share this article

  • A newly-discovered vulnerability posed a threat to Balancer V2 pools.
  • Balancer’s TVL declined as prices saw red.

On 22 August, Balancer [BAL] encountered a vulnerability that impacted several V2 pools. Consequently, Balancer urged customers to withdraw their tokens, as the vulnerability posed a substantial risk to millions of dollars.

Is your portfolio green? Check out the BAL Profit Calculator

A balancing act

The decentralized protocol, which facilitates trading through user-contributed liquidity pools, was notified about a bug in its high-interest-paying boosted pools on 22 August.

This disclosure prompted the protocol, governed by BAL token holders, to implement a lockdown, activating Balancer’s crisis response team and halting numerous pools to prevent potential draining.

As per Balancer’s latest assessment, approximately 1.4% of the total value locked, equivalent to around $10 million, remained exposed to risk at press time.

A few wstETH and stMATIC pools were also impacted during this period. Moreover, Lido, through Twitter, advised users to withdraw liquidity from these pools as soon as possible.

At the time of writing, the protocol had not given any updates about the nature of the vulnerability or what measures had been taken to fix the state of the various pools affected.

State of the protocol

Taking a look at the code commits made on the Balancer GitHub indicated that development activity for Balancer had slowed down at the time of publication. The security of various pools on the protocol may have been overlooked due to this.

According to Token Terminal, code commits on the protocol fell by 24.4% in the last week. The Total Value Locked (TVL) of the protocol also declined by 9% in the last seven days.

Source: Token Terminal

Realistic or not, here’s BAL’s market cap in BTC’s terms

Similarly, the price of BAL fell significantly over the last week. The velocity of the token also declined drastically, implying that the frequency at which the token was trading had plummeted.

At press time, BAL was trading at $3.46.

Source: Santiment


Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.