Balancer DAO Considers $8M Recovery Plan After $110M Exploit Halves TVL
Balancer DAO is discussing an $8 million recovery plan in response to a recent $110 million exploit that slashed the protocol’s total value locked. The proposal aims to reimburse affected liquidity providers using recovered assets; teams say recovered tokens across supported networks and asset types will be returned as the same tokens originally deposited. A dedicated claim mechanism is currently under development to handle distributions.
The decision has implications for BAL holders and broader DeFi confidence: a timely reimbursement could stem further outflows and set a governance precedent for on-chain recoveries, while delays or insufficient funds may prolong market pressure. DAO members are expected to debate funding sources and timelines — users should monitor official Balancer channels for the vote and claim rollout and exercise caution until the mechanism is live.