See More

Balancer Warns of Potential Exploit, Asks LPs to Withdraw Assets

2 mins
Updated by Paolo Besabella
Join our Trading Community on Telegram

In Brief

  • Balancer asked liquidity providers to remove their assets from some of its pool on Jan. 6.
  • The DeFi protocol native token rose by 0.62% in the last 24 hours.
  • Blockchain security experts have warned the industry to expect more hacks and exploits in 2023.
  • promo

DeFi protocol Balancer asked liquidity providers to remove their liquidity immediately from some pools because of a security issue.

In a Jan. 6 Twitter thread, the DeFi protocol revealed that the affected liquidity pools included the DOLA/bb-a-USD on Ethereum, It’s MAI Life and Smells Like Spartan Spirit on Optimism, bb-am-USD/miMATIC on Polygon, and Tenacious Dollar on Fantom. Cumulatively, these pools contain $6.3 million worth of digital assets.

Balancer did not reveal the issue but promised to make it public later. The DeFi platform said its protocol fees had been set to zero by the emergency multisig as a way to mitigate the problem.

With Balancer not specifying the problem, the crypto community has been speculating about what could be wrong. Given Balancer’s status as the fourth largest decentralized exchange, any exploit could significantly impact the space.

Meanwhile, this is not the first time that Balancer would face the threat of an exploit. In 2020, Balancer lost $500,000 to a hacker who exploited two liquidity pools.

Balancer’s BAL Price Performance Unaffected

Balancer’s native token BAL appears to be unaffected by the threat of an exploit on the protocol. According to CoinMarketCap data, BAL rose by 0.62% to $5.35 as of press time. However, its trading volume declined by roughly 7% during the timeframe.

Balancer BAL Price Performance
Source: CoinMarketCap

Defillama data shows that the Balancer DEX had a trading volume of $92.21 million in the last 24 hours and almost $350 million so far in January. The protocol’s TVL stands at $1.5 billion.

DeFi Protocols Exploit

Malicious players severally attacked DeFi protocols in 2022. In July, reports revealed that hackers had exploited over $2 billion from the crypto industry. BeInCrypto reported that the number had grown to $3.9 billion, citing data from the bug bounty platform Immunefi.

Meanwhile, blockchain security firm Certik said December 2022 recorded the lowest monthly figure of stolen crypto. According to the firm, only $62 million was stolen in the month. The firm reportedly predicted that the industry would see more hacks and exploits in this new year.

Top crypto platforms in the US | April 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Oluwapelumi-Adejumo.png
Oluwapelumi Adejumo
Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.
READ FULL BIO
Sponsored
Sponsored