Balancer says $2.8M still at risk after vulnerability warning

Ethereum automated market maker and decentralized finance protocol Balancer has warned that $2.8 million, or 0.42% of its total value locked (TVL), is still at risk after a bug was discovered on Aug. 22.

According to the Aug. 24 announcement, users are asked to “withdraw funds as soon as possible” if they have connected their wallets to the affected liquidity provider (LP) pools. Websites through the protocol have built individual user interfaces to determine whether user funds are at risk. The site then advises users to unstake, withdraw and unlock the affected tokens.

Selected assets at risk include Balancer’s assets deployed on Ethereum, Polygon, Arbitrum, Optimism, Avalanche, Gnosis, Fantom, and zkEVM.

Balancer said that on the day of discovery, developers mitigated 80 percent of critical vulnerabilities, impacting 4 percent of its $669 million TVL. In an update on August 23, Balancer explain The vulnerability has not yet been exploited, but funds worth $5.6 million at the time were still at risk.developer pointed out:

“We believe that funds in the mitigation pool (marked as ‘mitigated’) are safe, but timely migration to the safe pool or withdrawal is strongly recommended. Pools that cannot be mitigated are marked as ‘at risk’. If you are in any of these pools limited partners, please exit immediately.”

Cointelegraph reported on June 2 that Balancer has been launched on Optimism, the second-layer network of Ethereum. Balancer Labs CEO Fernando Martinelli said the Optimism deployment reflects his belief that layer 2 scaling solutions will effectively reduce transaction fees and network congestion. At the time, there were 38 projects on the Optimism Network.

More than 98.7% of liquidity initially considered vulnerable is now safe.

As of this writing, this vulnerability has not been exploited.

However, 0.42% of the total TVL ($2.8M) is still at risk and users are advised to use the UI withdrawal as soon as possible. pic.twitter.com/0eLGQ7peoR

— Balance (@Balance) August 24, 2023