Balancer

<ul><li>Balancer discovers a critical vulnerability in its high-interest-paying boosted pools, putting tens of millions of dollars at risk.</li><li>The protocol&#39;s TVL dropped nearly $100 million amid a rush of user withdrawals.</li><li>The community awaits a comprehensive post-mortem report from Balancer.</li></ul>Balancer, one of Ethereum&#39;s leading decentralized crypto trading projects, recently discovered a critical vulnerability in some of its high-interest-paying boosted pools, putting tens of millions of dollars in crypto at risk. The discovery sent shockwaves through the decentralized finance (DeFi) community and prompted urgent action from both the Balancer team and its users.Balancer took to Twitter to make an official statement regarding the discovery of the vulnerability:<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/0062590d5522491cae77a43128ad1a97.png" />Upon learning of the bug on Tuesday, Balancer&#39;s crisis response group was activated, and the protocol went into lockdown. Many pools were <a href="https://github.com/BalancerMaxis/multisig-ops/blob/main/BIPs/00notGov/2023-08-mitigation.md" rel="noopener noreferrer nofollow">paused</a> to prevent draining, but some could not be paused and were deemed at high risk. These pools had to be secured through user withdrawals, leading to a significant <a href="https://defillama.com/protocol/balancer" rel="noopener noreferrer nofollow">drop</a> in the protocol&#39;s total value locked (TVL). Nearly $100 million was withdrawn in a rush, and Balancer&#39;s latest estimate indicated that roughly $10 million remained at risk.The situation had an immediate market impact. Investors in BAL, Balancer&#39;s native token, were spooked, and the token&#39;s trading <a href="https://www.coingecko.com/en/coins/balancer" rel="noopener noreferrer nofollow">price dipped</a> from $3.55 to $3.44 immediately following the disclosure. The price has since recovered, trading at $3.47 at the time of writing.The Balancer team <a href="https://forum.balancer.fi/t/vulnerability-found-in-some-pools/5102?u&#61;endymionjkb" rel="noopener noreferrer nofollow">acted swiftly</a> to mitigate the issue, securing at least 80% of assets through emergency actions. Around 80% of the impacted pools were mitigated, but the remaining 20%, representing roughly 4% of Balancer&#39;s TVL, were labeled &#34;at risk.&#34; Jeff Bennett, a software engineer at Balancer Labs, urged all liquidity providers to <a href="https://app.balancer.fi/#/ethereum/recovery-exit" rel="noopener noreferrer nofollow">exit their positions</a> in affected pools immediately.Read full article at <a href="https://cryptotale.org/balancer-discovers-critical-vulnerability-in-boosted-pools-millions-in-risk/" rel="noopener noreferrer nofollow">CryptoTale.</a>

Balancer Discovers Critical Vulnerability in Boosted Pools: Millions In Risk

CryptoTale

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