Balancer Finds ‘Critical Vulnerability’ and Urges Users to Withdraw From Some Liquidity Pools

Balancer has discovered a critical vulnerability that has affected a number of V2 Pools within its ecosystem.

At exactly 3:52 PM UST, the Balancer team notified its community about a very real threat to their funds. Although the team managed to secure much of the Total Value Locked (TVL), there are still funds at risk.

Balancer has paused several pools to reduce any potential hazards as a proactive measure. These pauses will continue until further notice. Users holding liquidity within these affected Liquidity Pools (LPs) are advised to execute their withdrawal strategies without delay. The pools include Mainnet, Polygon, Arbitrum, Optimism, Avalanche, Gnosis, Fantom, and zkEVM.

More Information Is Available on Balancer’s UI

Two hours later, Balancer released an update offering good news. The vast majority of funds within the Balancer ecosystem have been confirmed as secure.

Furthermore, the vulnerability only poses a risk to 1.4% of the total TVL. This is limited to the boosted pools exclusively.

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The Balancer user interface (UI) will help share important information with all affected users about this problem.

A previous forum post verified the successful mitigation of over 80% of the compromised pools. However, roughly 4% of Balancer’s TVL remains susceptible to potential exploitation. At present, no hackers have exploited the vulnerability. 

Balancer believes the security of funds within the mitigated pools, identified as “mitigated,” is intact. However, it is strongly urging users to speed up their transition to safer pools or to initiate withdrawals.

The platform classifies pools that it hasn’t successfully mitigated as “at risk,” and it is urging users who are part of these pools to execute immediate withdrawals to protect their investments.

Only 1.4% of TVL Is at Risk

Balancer has introduced a personalized interface (UI 518) for users to see if their connected wallet is linked to the affected pools.

A full report is in the works, which will delve into the details of the vulnerability and the following steps taken. Additionally, for easy reference, Balancer has made the complete list of affected pools available in the comments section of the forum post mentioned earlier.

The post Balancer Finds ‘Critical Vulnerability’ and Urges Users to Withdraw From Some Liquidity Pools appeared first on BeInCrypto.

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