1. Balancer (BAL), a decentralized finance (DeFi) protocol, experienced a rapid decrease in total value locked (TVL) by over $200 million within 24 hours due to a critical vulnerability.
2. The #Balancer team identified this vulnerability in several Version 2 #Pools and alerted users via a #social media post on X.
3. Users were advised to withdraw funds from affected #liquidity pools (LPs) immediately to mitigate potential risks.
4. Although only 1.4% of the total TVL was deemed at risk, Balancer took preventive measures, including pausing some pools, to secure the majority of funds.
5. Balancer recommended migrating to safer pools or making withdrawals, particularly from pools labeled as "at risk."
6. Following the announcement, the #TVL on Balancer decreased from $840 million to $630 million on August 23rd.
7. Balancer successfully safeguarded most of the funds, and the current TVL on the protocol is now approximately $669 million.
8. The protocol informed users that swift action by Balancer LPs ensured over 97% of initially vulnerable liquidity is now secure.
9. While the vulnerability wasn't exploited, approximately 0.89% of total TVL ($5.6 million) remains at risk, prompting users to withdraw funds as soon as possible through the user interface.
10. This incident underscores the proactive approach of the Balancer team and the decentralized finance community in addressing potential security vulnerabilities to protect user assets.
