Balancer Proposes $8 Million Distribution to Hack Victims After $116 Million Exploit
Balancer DAO is moving to compensate victims of its November hack with $8 million in recovered funds. The breach, which siphoned $116 million from the platform, exposed vulnerabilities in the protocol's smart contracts despite multiple security audits.
Recovered assets stem from WHITE hat interventions and internal rescue efforts, while an additional $20 million was retrieved separately by StakeWise. Reimbursements will mirror the original token losses, calculated pro-rata based on each victim's share in affected liquidity pools.
The exploit capitalized on a rounding function flaw, shaking confidence in a protocol that had undergone eleven security audits across four different firms. Balancer's total value locked plummeted from $775 million to $258 million post-attack, with its native BAL token shedding 30% of its value.
