🚀 Balancer Protocol Proposes Distribution Plan for Recovered Funds After $116 Million Exploit
#BalancerProtocol #RecoveredFunds #CryptoExploit #WhiteHatHackers #LiquidityPools #ProRataDistribution #BPT #HackReimbursement #CryptoSecurity #StablePools #BlockchainSecurity #CryptoAudits #CryptoUserSafety #ExactOutSwaps #RoundingFunction #BathedSwap #BalancerHack #SecurityThreats #CryptoNews #ETH
According to Cointelegraph, two members of the Balancer protocol community have submitted a proposal detailing a distribution plan for a portion of the funds recovered from the protocol's $116 million exploit in November. Approximately $28 million was recovered by white hat hackers, internal rescuers, and StakeWise, an Ether liquid staking platform. However, the proposal addresses only the $8 million recovered by white hat hackers and internal rescue teams, while the nearly $20 million retrieved by StakeWise will be distributed separately to its users.
The proposal suggests that reimbursements should be non-socialized, meaning funds are distributed solely to the specific liquidity pools that lost the funds, with payouts made on a pro-rata basis according to each holder's share in the liquidity pool, represented by Balancer Pool Tokens (BPT). Additionally, reimbursements should be paid in-kind, allowing victims of the hack to receive payment denominated in the tokens they lost, thereby avoiding price mismatches between different digital assets.
The Balancer hack was described as one of the "most sophisticated" attacks in 2025 by Deddy Lavid, CEO of blockchain cybersecurity company Cyvers, underscoring the ongoing need for enhanced crypto user safety as security threats continue to evolve. Despite top blockchain security firms auditing Balancer's smart contracts 11 times, the platform was still compromised, leading some crypto users to question the effectiveness of audits in ensuring code safety.
Balancer released a post-mortem report on November 5, outlining the root cause of the hack: a sophisticated exploit targeting a rounding function used in EXACT_OUT swaps within its Stable Pools. The rounding function is designed to round down when token prices are input, but the attacker manipulated the calculation so that values were rounded up instead. This flaw was combined with a batched swap—a single transaction containing multiple actions—to drain funds from Balancer's pools.#BalancerProtocol #RecoveredFunds #CryptoExploit #WhiteHatHackers #LiquidityPools #ProRataDistribution #BPT #HackReimbursement #CryptoSecurity #StablePools #BlockchainSecurity #CryptoAudits #CryptoUserSafety #ExactOutSwaps #RoundingFunction #BathedSwap #BalancerHack #SecurityThreats #CryptoNews #ETH
🚀 Yearn Attack Revealed as Phishing Scheme, Similar to Balancer Incident
#YearnAttack #PhishingScheme #BalancerIncident #RailgunProtocol #TornadoCash #CryptoExploit #SlowMist #YuJian #ETH #CryptoSecurity
According to PANews, SlowMist founder Yu Jian has disclosed that the 'white hat negotiation' messages appearing on-chain following the Yearn attack are fabricated and part of a phishing scheme, similar to the previous Balancer incident. The attackers utilized the Railgun protocol to conceal their identities, prepared a low-Gas address 28 days in advance, and executed the exploit. They ultimately transferred 1,000 ETH through Tornado Cash. The attacker's address currently holds approximately $6 million in crypto assets.#YearnAttack #PhishingScheme #BalancerIncident #RailgunProtocol #TornadoCash #CryptoExploit #SlowMist #YuJian #ETH #CryptoSecurity
🚀 YAM Finance Says $240K Inverse Incident Tied to LlamaLend “Donation Attack,” Not Contract Vulnerability
#YAMFinance #InverseFinance #LlamaLend #DonationAttack #sDOLA #DOLA #PriceManipulation #Liquidation #BlockchainSecurity #BlockSec #CryptoExploit #Collateral #MarketImpact #PriceDistortion #CryptoLoss
YAM Finance responded to reports of an exploit involving Inverse Finance, stating that the suspicious transactions were not caused by a contract vulnerability but stemmed from a price distortion linked to LlamaLend’s mechanism.The clarification follows a report that Inverse Finance may have suffered losses of approximately $240,000, according to blockchain security firm BlockSec.Alleged “Donation Attack” on LlamaLendAccording to YAM Finance, attackers executed a so-called “donation attack” targeting sDOLA within LlamaLend.The move reportedly pushed the exchange rate from:~1.188 sDOLA = 1 DOLAto~1.358 sDOLA = 1 DOLAThis sharp price shift allegedly triggered widespread liquidations of users who had deposited sDOLA as collateral to borrow crvUSD.Liquidations Despite Higher Collateral ValueYAM Finance noted that the most unusual aspect of the incident is that an increase in collateral value typically moves borrowers away from liquidation thresholds.However, in this case:Nearly all positions using sDOLA as collateral were liquidatedThe reason why higher collateral valuation moved users closer to liquidation remains unclearThe team indicated that analysis is ongoing to determine why the mechanism behaved contrary to expectations.Secondary Effects: sDOLA Gains, DOLA Trades at 1% DiscountThe incident also produced secondary market impacts:Users who held sDOLA without leverage saw roughly 14% paper gainsDOLA is currently trading at approximately a 1% discount to its pegSome community members have suggested that borrowers consider repaying DOLA debt during the temporary discount window.BlockSec Flags $240K LossEarlier, BlockSec reported that Inverse Finance appeared to have been attacked, with estimated losses around $240,000. The firm suggested the incident may have involved price manipulation related to DOLA, leading to multiple forced liquidations.BlockSec stated it has contacted the relevant teams for clarification.#YAMFinance #InverseFinance #LlamaLend #DonationAttack #sDOLA #DOLA #PriceManipulation #Liquidation #BlockchainSecurity #BlockSec #CryptoExploit #Collateral #MarketImpact #PriceDistortion #CryptoLoss