Decentralized cryptocurrency exchange (DEX) balancer, warned liquidity providers to immediately withdraw funds from the five pools where $6.3 million of funds were at risk.
The Problem With The Balancer Funds Of The Cryptocurrency Exchange Is Not Detailed
On January 6, Balancer announced an “issue” with liquidity pools on the platform via Twitter. He stated that the protocol fees were set to zero to mitigate the issue and that more details will be “released to the community in the near future.”
Balancer listed the pools from which funds should be withdrawn as DOLA / bb-a-USD on Ethereum, It’s MAI life on Optimism and Smells Like Spartan Spirit and Tenacious Dollar on Fantom.
The largest pool is DOLA/bb-a-USD, which is currently dealing with $3.6 million in funding.
Balancer is a DeFi protocol that allows users to trade tokens in pairs called pools. Liquidity providers supply these tokens to the pools and charge for it.
IMPORTANT: Because of a related issue, LPs of the following pools should remove their liquidity ASAP as the issue cannot be mitigated by the emergency DAO. https://t.co/WcBeBvjdY2
— Balancer (@Balancer) January 6, 2023
According to analytics platform DefiLlama, Balancer is the sixth-largest decentralized exchange (DEX) by trading volume, with over $52 million per day. cryptocurrency performing the operation.
It is not yet clear whether this issue is caused by a bug or a potential security vulnerability, and Balancer has not provided further details on the nature of the issue.
However, the company took swift action to protect users’ funds by setting protocol fees to zero for some pools and encouraging liquidity providers to withdraw funds from affected pools.
*Not investment advice.
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