Balancer averts $4.12M loss after new attack vector discovery
Balancer announced it averted roughly $4.12 million in potential losses after discovering a new attack vector and coordinating a salvage operation with white‑hat hackers who secured funds in at‑risk V2 vaults. The intervention came shortly after a large $116 million exploit, and protocol officials credited rapid detection and community cooperation for preventing further drainage of assets.
The incident underscores persistent security risks for automated market makers and the growing role of ethical hackers in incident response. Balancer said an internal investigation is ongoing and that it will prioritize patches and audits for V2 contracts; while the quick recovery reduces immediate contagion risk, the protocol warned stakeholders that technical details will be released only after triage is complete.