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DeFi Giant Balancer Warns $6.3 Mn Funds At Risk

  • Due to the $6.3 Mn loss, Balancer has ordered its liquidity providers to remove money from five pools immediately.

  • BAL trades at $5.25. CoinGabbar reports a 1.17% increase in the last hour compared to a 1.14% decrease in the previous 24 hours.

07-Jan-2023 By: Shikha Jha
DeFi Giant Balancer

Balancer has instructed its liquidity providers to 

Immediately withdraw money from five pools due to the probable loss of $6.3 Mn.

Independent exchange In five pools totaling $6.3 million, Balancer has issued a notice to its liquidity providers, asking them to withdraw their assets. Balancer has been recommending solutions to fix what appears to be a part of a larger possible exploit or a technical flaw.

Balancer Under Damage Control

On January 6, Balancer announced on Twitter that there was a "problem" with the platform's liquidity pools. The DeFi application announced that the protocol costs had been lowered to zero as a solution to the issue and that more information would be made available to the public soon. The team also made clear that not all of the effects of the mystery problem's consequences would be mitigated by this specific technique.

Pools Affected by Balancer

A list of the pools that require money to be removed from them was supplied by Balancer. These pools are Tenacious Dollar on Fantom, It's MAI life and Smells Like Spartan Spirit on Optimism, and DOLA on Ethereum. The DOLA pool is the largest of the three, currently managing assets valued at $3.6 million.

The Balancer protocol, an automated market maker that allows anybody to create or add liquidity to trading pools while earning customisable trade fees, is powered by the Balancer token, an Ethereum-based asset.

As of right now, Balancer (BAL) is being traded at a price of $5.25. According to cryptocurrency market tracker CoinGabbar, this reflects a growth of 1.17% over the last hour as opposed to a decline of 1.14% over the previous 24 hours.

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