🔥 BitDegree partnered with Ogvio - a free international money transfer service! Join the waitlist & grab Rewards! 🎁

Balancer Introduces $8 Million Payout Plan After $116 Million Hack Fallout

Key Takeaways

  • ​Two Balancer community members proposed a plan to distribute $8 million recovered from the $116 million November exploit;
  • The payout targets only affected liquidity pools, with funds divided based on each holder’s Balancer Pool Tokens;
  • Reimbursements will be made in the same tokens lost, as Balancer reviews a hack that bypassed 11 prior security audits.

Stop overpaying - start transferring money with Ogvio. Join the waitlist & grab early Rewards NOW! 🎁

Balancer Introduces $8 Million Payout Plan After $116 Million Hack Fallout

Two contributors from the Balancer protocol have introduced a plan to distribute part of the money recovered after the platform’s $116 million exploit in November.

Roughly $28 million of the stolen amount has been recovered through several efforts, including white-hat hackers, Balancer’s internal rescue teams, and StakeWise, an Ethereum ETH $3,039.81 liquid staking project.

The current proposal focuses only on the $8 million retrieved by white-hat and internal teams. The nearly $20 million recovered by StakeWise will be managed and returned to its users separately.

Toobit Tutorial For Beginners (FULL Animated 2025 Guide)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

The proposal suggests that compensation should not be spread across all users but instead directed to the specific liquidity pools that were directly affected. Each pool’s recovery would depend on the amount lost, with funds divided according to participants’ shares of Balancer Pool Tokens (BPT).

The authors also recommend that repayments be made in the same digital assets that were lost, rather than using other tokens.

According to Balancer’s GitHub records, its code has undergone 11 audits by four separate blockchain security firms. Despite those reviews, the protocol was still exploited.

On November 5, Balancer published a post-mortem report identifying the vulnerability. The breach involved manipulating a rounding function used in EXACT_OUT swaps within its Stable Pools.

The function normally rounds prices down, but the attacker found a way to make the system round values up instead.

Recently, Upbit $1.8B halted all deposits and withdrawals on the Solana SOL $141.05 network. What happened? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

Loading...
binance
×
Verified

GET EARLY REWARDS

Join Ogvio Waitlist
Rating
5.0