Decentralized exchange Balancer has issued a warning to its liquidity providers, directing them to remove their funds from five pools totaling $6.3 million. What appears to be part of a wider potential exploit or technical flaw, Balancer has prescribed ways to eliminate it.
Balancer under damage control
At 2:03 UTC on January 6, Balancer took to Twitter to announce an “issue” with the platform’s liquidity pools. To rectify the issue, the DeFi application stated that the protocol fees had been set to zero and that additional information would be made public in the near future. However, the team also stressed the fact that this particular strategy would not be effective in mitigating all the implications of the mystery problem.
IMPORTANT: Due to a related issue, LPs from the following pools must remove their liquidity as soon as possible, as the issue cannot be resolved by the emergency DAO. https://t.co/WcBeBvjdY2
— Balance (@Balancer) January 6, 2023
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Impacted Pools from Balancer
Balancer has provided a list of the pools from which funds should be withdrawn. These pools include DOLA/bb-a-USD on Ethereum, It’s MAI life and Smells Like Spartan Spirit on Optimism, and Tenacious Dollar on Fantom. Of which the DOLA/bb-a-USD pool currently manages $3.6 million in assets, making it the largest of the three pools.
The Balancer Token is an Ethereum-based asset that serves as the driving force behind the Balancer Protocol, an automated market maker that gives anyone the ability to build or add liquidity to trading pools while earning adjustable trading fees.
As things stand, the price of Balancer (BAL) is currently trading at $5.35. This represents a 1.17% increase in the past hour, as opposed to the 1.19% decline in the past 24 hours, according to crypto market tracker CoinMarketCap.
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Pratik has been a crypto evangelist since 2016 and has experienced almost everything crypto has to offer. Be it the ICO boom, the bear markets of 2018, Bitcoin’s halving so far – he’s seen it all.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
This post Balancer issues warning as $6.3 million funds are now at risk
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