Notional V3 Shuts Down After Balancer Hack Wipes Out Leveraged Vault Users
Notional V3 Shuts Down After Balancer Hack Wipes Out Leveraged Vault Users
馃拃 Notional's Final Chapter
Notional V3 has permanently shut down following a November 3rd Balancer V2 hack that devastated the protocol.
The damage was severe:
- Leveraged vault users lost 100% of their positions
- ETH lenders faced massive haircuts: 56% on Mainnet, 19% on Arbitrum
- Total bad debt reached 713 ETH across both networks
What happened: The hack targeted five vaults containing ETH pairs, zeroing out all collateral values. Notional's team immediately paused the protocol but determined the damage was too extensive to continue operations.
User impact breakdown:
- Vault holders: Complete loss of positions
- ETH lenders: Significant haircuts on asset values
- Other users: No haircuts applied
Recovery efforts: Notional used all reserves (~$485,000 total) to minimize ETH lender losses. The team converted non-ETH reserves to ETH for proportional distribution to affected users.
What's next: Balancer is working with authorities on potential fund recovery. Any recovered assets will be distributed proportionally to Notional users. The team is evaluating future plans.
Balancer Hack Response Detail On November 3rd, Notional V3 was impacted by a smart contract hack of Balancer V2. This incident led to significant losses for Notional users and ultimately a full wind-down of Notional V3. This post will detail the decisions and calculations made
馃毃 Notional Pauses $mAPOLLO Vault Following ResolvLabs Exploit
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Notional has launched **Smart Withdrawal**, a new feature that enables users to exit leveraged positions instantly without costs, even when underlying collateral has redemption delays. **Key benefits:** - Zero-cost leverage unwinds on illiquid collateral - Eliminates need to sell collateral at a discount - Reduces redemption time from 6+ cycles to just 1 cycle - No waiting weeks to fully exit positions The innovation addresses a critical pain point in DeFi lending, where users previously faced either selling assets below market value or enduring lengthy withdrawal periods.
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Notional has launched its first **Exponent vault** featuring **$mAPOLLO**, developed in partnership with Midas RWA and Apollo Crypto. **Key Details:** - First vault in the Notional Exponent series - Collaboration between Midas RWA and Apollo Crypto - Part of a broader expansion with more vaults planned **What's Next:** Notional indicates this is just the beginning, with plans to introduce: - Additional vaults (including $mHYPER) - More curators - Increased liquidity options - Enhanced yield opportunities The Exponent platform aims to improve leveraged yield strategies for DeFi users. The vault is now available for users to try.
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Notional has announced a slight delay to its Exponent launch, now scheduled for **January 29th**. The protocol, which enables fixed-rate borrowing and lending on Ethereum, is preparing to release its latest version after previously setting a November 17th launch date for the beta. **Key Details:** - New launch date: January 29th, 2026 - Follows previous delay from November 2025 target - Exponent represents next iteration of the protocol Notional currently supports lending and borrowing of USDC, DAI (up to 1 year) and ETH, WBTC (up to 6 months) through on-chain liquidity pools.