- Balancer Labs has revealed a critical vulnerability affecting multiple V2 pools.
- Mitigation measures have secured 80% of the liquidity pools, but 4% remain at risk as of press time.
- Users asked to withdraw from affected LPs immediately, with Lido Finance highlighting possible victims.
Balancer version 2 (V2) pools have suffered a critical vulnerability. With emergency mitigation measures already underway, users have been asked to withdraw affected liquidity pools immediately.
Balancer has received a critical vulnerability report affecting a number of V2 Pools.— Balancer (@Balancer) August 22, 2023
Emergency mitigation procedures have been executed to secure a majority of TVL, but some funds remain at risk.
Users are advised to withdraw affected LPs immediately.https://t.co/PDzX32gqeS pic.twitter.com/F1f649Wz3L
The announcement follows a report by technology firm and non-custodial portfolio manager, Balancer Labs, which is also a liquidity provider and price sensor, noting that approximately 4% of Balancer TVL is at risk. Reportedly, 80% of the pools are already enjoying the benefits of quick mitigation measures after the team’s rapid response. For the remaining LPs, however, users have been asked to withdraw immediately.
Part of the response involved the Emergency SubDAO, which enabled a significant amount of withdrawals from the affected pools while pausing the ones that could be paused. Citing an excerpt from the announcement by the Balancer team:
We believe funds in the mitigated pools (labeled “mitigated”) are safe, but nevertheless strongly recommend timely migration to safe pools, or withdrawal. Pools that could not be mitigated are labeled “at risk”. If you are an LP in any of these pools, please exit immediately.
Further, the firm is also guiding users on how to withdraw from the LPs, with a custom page already up on the user interface (UI) to help potential victims (wallet owners) establish whether their wallets were affected. Affected in this case means the wallet is linked to the compromised pools.
Lido Finance reveals possible victims
Meanwhile, the Lido Finance ecosystem has revealed the involvement of pools on Beethoven X. Notably several Lido-related pools could be at risk. Among them:
Lido Finance has also indicated that a few (w)stETH and stMATIC pools may have been affected.
Balancer has committed to providing a “post-mortem” later, which is a situation analysis explaining the vulnerability and how it was handled.
Users are asked to visit withdrawal page 85 to confirm if they are victims.
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