DEFISECURITY

Balancer v2 discloses unknown vulnerability in its liquidity pools, TVL drops by nearly $200 million

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Balancer v2 discloses unknown vulnerability in its liquidity pools, TVL drops by nearly $200 million

Balancer officially announced that there was an unknown vulnerability in v2 liquidity pools. With the urgency to withdraw funds, Balancer v2's Total Value Locked (TVL) dropped by nearly $200 million.

Balancer: Vulnerability Found in v2 Pools

On the evening of August 22nd, Balancer disclosed a serious vulnerability in its v2 pools. The official team stated that they have initiated emergency procedures and have mitigated 80% of the issue. However, approximately 4% of the total value locked (TVL) is still at risk, although they emphasized that the vulnerability has not been exploited and no funds have been lost as a result.

Balancer has marked the affected pools as "mitigated" and the pools that cannot be mitigated as "at risk," strongly advising users to withdraw or migrate their funds to other pools.

The affected pools include:

  • Gnosis

  • zkEVM

  • Fantom

  • Polygon

  • Mainnet

  • Arbitrum

  • Optimism

  • Avalanche

Before the announcement of the unknown vulnerability, Balancer v2 had a TVL of $747 million, putting approximately $29.88 million of user funds at risk.

In the early hours of the 23rd, Balancer stated that only 1.4% of funds in boosted pools were affected, and in order to reduce risks, the related pools have been temporarily suspended.

Balancer TVL Decreases by $200 Million

Despite Balancer's swift actions, according to DefiLlama, its TVL has decreased from $747 million to $546 million, a decline of approximately -26.9%.

The price of Balancer BAL has not been significantly affected. According to CoinMarketCap, it has experienced a 24-hour decrease of about -2.37%, with a current price of $3.52.

The Balancer team has stated that they will promptly release an analysis report covering detailed information about the vulnerability and how it was addressed.