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The attack mainly affected composable stable v5 pools that were out of the pause window, and balancer recommends that users refrain from interacting with them, noting that its priority is mitigation and recovery of funds. Balancer confirmed that the exploit affected its v2 composable stable pools, but the team was unable to pause them and prevent further drains after they were noticed. Balancer v2's composable stable pool the affected component in this attack was the composable stable pool [4] of the balancer v2 protocol
Defi protocol balancer suffered a major breach on monday, affecting balancer v2 composable stable pools In an update describing the attack, balancer says it suffered a security breach affected the protocol’s v2 composable stable pools. Total losses across multiple chains reached over $128 million, per peckshieldalert.however.
Conclusion the balancer exploit demonstrates how mathematical vulnerabilities in defi protocols can be weaponized through automation and careful parameter tuning
The attacker’s success stemmed from recognizing that negligible rounding errors become exploitable when amplified through dozens of operations in atomic transactions. Balancer released its preliminary exploit report identifying a rounding error in v2 pools as the root cause of the $128m hack. The liquid staking platform stakewise has recovered about 16% of the assets that hackers just stole from the decentralized finance (defi) protocol balancer
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