Balancer

**Balancer team executed a whitehat recovery operation** securing approximately **$4.1M** from vulnerable V2 meta-stable pools following the discovery of a new value-extraction path. **Key Details:** - Recovery initiated at 7PM UTC in coordination with Certora and SEAL Org - Funds now in controlled custody for reconciliation and return to users - **Multiple chains affected:** Ethereum, Optimism, and Arbitrum - **V3 pools remain unaffected** by this vulnerability **Affected Pools:** - 4 pools on Ethereum mainnet - 2 pools on Optimism (with Beethoven X) - 1 pool on Arbitrum **User Advisory:** - **Do not interact** with listed pools until further guidance - Only follow official Balancer channels for updates - Beware of phishing attempts during this incident This follows the recent $128M exploit that affected Balancer V2 stable pools across multiple chains. The team is working on reconciliation and will provide verified updates as the process completes.

**Balancer Labs proposes deprecating v2 stable pools** following recent security events. **Key changes:** - All liquidity providers urged to **migrate to v3** - v2 pool factories will be disabled - **v3 remains fully operational** and unaffected This is a **preventive measure** taken out of abundance of caution. The proposal aims to enhance security by consolidating liquidity on the newer, more secure v3 platform. **What LPs need to do:** - Remove liquidity from v2 stable pools - Migrate funds to v3 pools - Monitor the [governance proposal](https://forum.balancer.fi/t/bip-xxx-transitioning-to-balancer-v3-disabling-v2-pool-factories/6874) for updates Balancer emphasizes this is a **proactive security step**, not a response to immediate threats to v3.

**Balancer reached out directly to the hacker** following Monday's exploit of their v2 pools. The team sent an **on-chain message to all known addresses** involved in the incident, offering a communication path for fund recovery. **Key developments:** - Investigation ongoing with high priority - Direct contact attempt made with exploiter - Users awaiting further updates - Team following security best practices Balancer warns users to **avoid scam attempts** that may appear in response to the incident. The protocol continues gathering information and promises updates as the investigation progresses.

**StreamDefi** has launched four new StableSurge pools on Balancer v3, bringing their $265M+ TVL and delta-neutral strategies to **Plasma, Arbitrum, and Avalanche**. **Key Features:** - **StableSurge hooks** maintain tight pegs through dynamic fee adjustments - Penalties for destabilizing trades, rewards for rebalancing trades - **100% boosted pools** earn lending yield while providing liquidity - Delta-neutral strategies offering **8-18% APY** with zero directional risk **Live Pools:** - [xUSD/USDT on Plasma](https://balancer.fi/pools/plasma/v3/0x694c009aa31b3f80ee18c218b02390ca2d7151e7) - [USDC/xUSD on Arbitrum](https://balancer.fi/pools/arbitrum/v3/0x7c60989d5e663836cf688f2bacf12a1208ae11b7) - [mevUSDC/xUSD on Avalanche](https://balancer.fi/pools/avalanche/v3/0x9dfdf58e1624cba507d0a38059e85eeab74f3b6b) - [BTC.b/xBTC on Avalanche](https://balancer.fi/pools/avalanche/v3/0x345e9afe5dd68237541993e5e2b9a87367ed91b7) The partnership focuses on **sustainable returns** rather than unsustainable incentives, combining Stream's proven strategies with Balancer's peg-protecting technology. Explore pools at [balancer.fi](http://balancer.fi)

**Plasma Protocol achieved over $100M in Total Value Locked (TVL) within just 24 hours of deployment.** Key highlights: - Protocol launched and immediately attracted significant capital - Liquidity flows directly into Aave vaults to boost yields for liquidity providers - Aave simultaneously reached $4B+ TVL during the same period The rapid adoption demonstrates strong market demand for the protocol's yield-boosting mechanism. By channeling funds into established Aave infrastructure, Plasma creates additional earning opportunities for participants while leveraging proven DeFi protocols.

Balancer is hosting their weekly office hours to discuss two key developments: - Insights and impressions from DappCon Berlin - Updates on the upcoming Readjusting Concentrated Liquidity AMM (reCLAMM) The community session will provide firsthand ecosystem updates and allow participants to ask questions directly. Join the discussion on [Discord](https://discord.com/channels/638460494168064021/930442359932600380). *Previous office hours have covered Balancer V3 developments and ecosystem updates.*

The Balancer Alliance program is now live, allowing protocols to earn swap fee shares by committing to long-term alignment. **Key developments**: - Rocket Pool joins, bringing deep rETH liquidity and ongoing DAO collaboration - Lido strengthens partnership, focusing core liquidity on Balancer - Protocols must convert fees to 80/20 BAL/WETH and lock as veBAL - Program connects governance rights with protocol commitment The Alliance structure emphasizes DAO-to-DAO cooperation and sustainable liquidity, particularly suited for Liquid Staking Tokens.

Balancer has unveiled a redesigned veBAL interface aligned with Balancer V3's visual identity. The update focuses on improving the user experience for $BAL token holders who participate in governance. Key features: - Streamlined process for locking $BAL tokens - Simplified gauge voting interface - Enhanced pool incentives visibility - Calendar integration for vote tracking The new interface maintains core governance functionality while reducing friction points. Users can access all veBAL features at [balancer.fi/vebal](https://balancer.fi/vebal). This update follows recent DAO initiatives to optimize liquidity, including deactivating inactive v2 gauges and boosting incentives for high-performing pools.

Balancer V3 launches MEV-Cap Hook, a new feature that redirects Maximal Extractable Value (MEV) back to liquidity providers. The system works by dynamically adjusting pool fees based on priority fees paid by MEV bots on OP Stack chains like Base and Optimism. Key features: - Higher priority fees trigger higher dynamic pool fees - Captured value stays within the pool - Works across all pool types, not just ETH pairs The mechanism allows MEV bots to operate while ensuring value flows back to LPs instead of leaking out. Currently live on Base, with plans to expand MEV protection offerings through collaboration with CoW Protocol.

Balancer V3 introduces a new boosted pool featuring MiCA-compliant stablecoins $USDR and $USDQ, with initial TVL of 1M. Key features: - Powered by Morpho Labs and curated by Steakhouse - 100% LP liquidity redeposited into lending markets - Enhanced yields through lending incentives - Fully compliant solution for business operations The stablecoins are issued by StablR ($USDR) and Quantoz ($USDQ), designed for both on-chain and off-chain financial solutions. Learn more: - $USDQ: [Quantoz](https://quantozpay.com/eurq-usdq/) - $USDR: [StablR](https://stablr.com/usdr)