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.


© 2025 The Block. All Rights Reserved. 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.

TAGS
DEXS

AUTHOR

Tim is the Editor-In-Chief of The Block. He writes about the evolution of crypto technology and the people who are at the forefront of it. He provided exclusive, source-based insights into the launches of the Bitcoin and Ethereum ETFs, crypto sales by the FTX Estate and the Trump-linked World Liberty Financial project. Prior to joining The Block, Tim was a news editor at Decrypt. He earned a bachelor's degree in philosophy from the University of York and studied news journalism at Press Association Training. Follow him on X @Timccopeland.

See More
Connect on

Editor

To contact the editor of this story: Mike Millard at [email protected]

WHO WE ARE

The Block is a news provider that strives to be the first and final word on digital assets news, research, and data.

+ Follow us on Google News
Connect with the block on