馃挵 Balancer Proposes Framework for Redistributing $45.7M in Recovered Hack Funds
馃挵 Balancer Proposes Framework for Redistributing $45.7M in Recovered Hack Funds
馃挵 Recovery Framework Revealed
Balancer has opened community discussion on redistributing recovered funds from the November 3rd V2 exploit that initially stole $94.8M.
Key Recovery Details:
- $45.7M total protected/recovered through coordinated response
- $4.6M recovered by whitehat hackers under SEAL framework
- $19.3M protected through emergency pool pauses
- $21.8M recovered by StakeWise DAO emergency operation
Proposed Distribution Framework:
- Pool-by-pool reimbursement rather than socializing losses
- LPs must actively claim recovered funds (no airdrops)
- Proportional distribution based on positions at exploit time
- Only applies to pools where funds were actually recovered
Technical Background: The exploit targeted V2 Composable Stable Pools through rounding errors in exact-out swaps, affecting pools across Ethereum, Arbitrum, Base, Optimism, and Polygon. Balancer V3 remains completely unaffected due to its different architecture.
Next Steps:
- Community feedback period on forum proposal
- veBAL governance vote required for final approval
- Claiming process details to be announced
- Continued law enforcement coordination for remaining funds
Balancer emphasizes transparency and user-centric approach throughout the recovery process.
In connection with the recent Balancer V2 stable-pool incident, a new value-extraction path was identified in V2 meta-stable pools. In coordination with @certora and @_SEAL_Org , Balancer team initiated a whitehat recovery around 7PM UTC and has secured ~$4.1M to controlled
A new discussion is now live on the Balancer Forum for feedback, outlining a suggested framework for redistributing assets recovered during the recent attacks on v2, including both whitehat rescues and internal recovery efforts. It proposes a method for reimbursing LPs in pools
Balancer Partners with Euler and Alpha Growth for Integrated Lending Infrastructure
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80/20 Liquidity Pools: A Capital-Efficient Alternative to Traditional AMM Ratios
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