Just-In: DeFi Giant Balancer Issues Warning As $6.3 Mn Funds Are Now At Risk

Decentralized exchange Balancer has issued a warning to its liquidity providers, instructing them to remove their funds from five pools containing a total of $6.3 million. What seems to be a component of a broader potential exploit or a technical flaw, Balancer has been prescribing ways to eliminate it.
Balancer Under Damage Control
On January 6, at 2:03 a.m. UTC, Balancer took to Twitter in order to make an announcement regarding an “issue” with the platform’s liquidity pools. In order to alleviate the problem, the DeFi application stated that the protocol fees had been set to zero, and that additional information would be publicly provided in the near future. However, the team also emphasized the fact that this particular strategy would not be effective in mitigating all of the implications of the mystery problem.
IMPORTANT: Because of a related issue, LPs of the following pools should remove their liquidity ASAP as the issue cannot be mitigated by the emergency DAO. https://t.co/WcBeBvjdY2
— Balancer (@Balancer) January 6, 2023
Read More: What’s Making Cardano (ADA) Price Rally Over The Likes Of Dogecoin & XRP?
Balancer’s Affected Pools
Balancer provided a list of the pools that need to have funds withdrawn from them. 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. Out of which, the DOLA / bb-a-USD pool currently manages $3.6 million worth of 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 anybody the ability to build or add liquidity to trading pools while earning customizable trading fees.
As things stand, the price of Balancer (BAL) is currently being traded at $5.35. This represents an increase of 1.17% in the past 1 hour, in contrast to its 1.19% drop during the last 24 hours, as per crypto market tracker CoinMarketCap.
Also Read: Check Out The Top Crypto Discord Servers Worth Joining In 2023
- Pi Network Mainnet to Get Major Upgrade in Q4, Says Expert
- Bitwise Solana ETF to Launch This Week as It Amends Staking, Fees? Bloomberg Weighs In
- Canary Capital Trump Coin ETF Secures DTCC Listing as Expert Predicts Price Breakout
- Polymarket Founder Shayne Coplan Teases Potential POLY Token After $2B ICE Deal
- FOMC Minutes Signal Fed Open to More Rate Cuts This Year, Bitcoin Bounces
- Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?
- Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
- Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?
- ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?
- Ethereum Price Could Soar to $6,500 as BlackRock’s ETF Nears $20B Milestone