Balancer, one of Ethereum’s top decentralized crypto trading projects, is urging customers to withdraw their tokens after the discovery of a critical vulnerability that could put tens of millions of dollars in crypto at risk. “People are withdrawing fast,” said Xeonus, a pseudonymous contributor. The protocol’s Total Value Locked (TVL) dropped nearly $100 million Tuesday due to the withdrawal rush.
The bug, which has yet to be made public, was discovered in Balancer’s high-interest-paying boosted pools. Balancer’s crisis response group activated and paused many pools to prevent them from being drained. However, some pools could not be paused and are at high risk, according to Xeonus, and must be secured through user withdrawals. Balancer estimates that 1.4% of total value locked – roughly $10 million – remains at risk.
Once the situation has subsided, Balancer contributors plan to release a post-mortem. They have already secured at least 80% of assets through the emergency actions. BAL token holders were spooked despite the orderly chaos, with the token trading around $3.44 at press time, down from its perch at $3.55 prior to the disclosure. “We are fine so far,” Xeonus said. “All partners are informed. No funds have been stolen so far.”