Balancer (BAL), a decentralized finance (DeFi) protocol, has suffered a loss of nearly $1 million due to a hack that occurred on August 27. This unfortunate event took place just days after Balancer had warned its users about a critical vulnerability affecting multiple pools. Despite efforts to mitigate the risks and caution users, Balancer was unable to pause the affected pools. As a result, the protocol urged users to withdraw from the impacted liquidity pools to prevent further exploits. NewsBTC had previously reported on August 22 about the discovery of the vulnerability by Balancer.
🌎《Now you can now start trading at TNNS PROX》📈
🔥Start trading today, click "sign up" from the link above.
Funds were lost as the balancer was hacked despite prior warning of a crucial vulnerability. Balancer Exploit Unveiled
Balancer has acknowledged the existence of an exploit related to a previously disclosed vulnerability on X (formerly known as Twitter) on Sunday. Although mitigation measures were implemented to reduce risks, they were insufficient to halt the affected pools. As a result, users were advised to withdraw their funds from the vulnerable liquidity pools to safeguard their investments. Meir Dolev, a Web3 security expert, revealed that the attacker was persistently carrying out their operation. Funds were lost as the balancer was hacked despite prior warning of a crucial vulnerability. Approximately $900,000 was affected, with over $600,000 already transferred to the address 0xB23711b9D92C0f1c7b211c4E2DC69791c2df38c1.
According to Blockchain security firm Beosin, the recent hack on Balancer was carried out using multiple flash loan attacks. Flash loans, which allow users to borrow funds without collateral, have become popular tools for exploitation in the DeFi space. This incident highlights the ongoing challenges faced by DeFi platforms in ensuring the safety of user funds. As the industry continues to grow and attract significant investment, it is crucial to prioritize the security of protocols and address any vulnerabilities.
BAL Price Plunges, Exploit Triggers 20.81% Decline
Balancer's native token, BAL, has faced significant market repercussions after a recent exploit. The exploit resulted in a loss of around $1 million and has had a noticeable impact on BAL's price and key metrics. Token Terminal data reflects the challenges faced by the platform. As a result, BAL's price has seen considerable volatility, with a sharp decline of 20.81% over the past 30 days, as shown in the chart below.
During the past 180 days, BAL token has experienced a significant decrease in value, plummeting by 51.69%. The exploit has negatively impacted investor sentiment and market confidence, leading to a downward trend.
Despite the token's all-time high of $74.45, its all-time low of $3.36 reflects a sharp decline following the exploit. Balancer's market capitalization metrics have also been affected, with a decrease of 22.60% in circulating market cap, indicating a decline in token valuation and investor confidence.
Additionally, the exploit has impacted Balancer's total value locked (TVL), which represents the amount of capital locked within the protocol. Following the exploit, Balancer's TVL has decreased by 33.86%, indicating a shift in investor sentiment and a potential reallocation of funds to more secure platforms.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Comments