Balancer warns $6.3 million of funds at risk, urges LPs to remove liquidity
Quick Take
- Balancer has warned its liquidity providers to withdraw funds from five pools where there is $6.3 million at risk.
- It appears to be part of a larger potential exploit from which other pools have been protected.
Decentralized exchange Balancer warned its liquidity providers to withdraw funds from five pools where $6.3 million of funds are at risk.
This appears to be part of a larger potential exploit or bug, which Balancer is trying to mitigate. Balancer said that it has used emergency controls to set protocol fees to zero for some of its other pools. This was done in order to protect against an issue that it will disclose in the future. It wasn't able to do so for these five pools, hence it is encouraging liquidity providers to withdraw their funds as quickly as possible.
The five pools are on Ethereum, Polygon, Optimism and Fantom. The largest pool is DOLA / bb-a-USD, which currently looks after $3.6 million of funds.
Balancer is a DeFi protocol that allows users to trade tokens in pairs called pools. Liquidity providers supply these tokens to the pools and receive fees for doing so.
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