Balancer alerts users to V2 Pools threat, affected LPs asked to withdraw funds

Balancer Labs has announced that a number of V2 Pools are vulnerable to an exploit after it received a report to that effect. 

The team at the decentralized finance (DeFi) protocol disclosed the said vulnerability on Tuesday, adding that emergency measures had been undertaken to secure a majority of user funds.

However, despite these mitigation processes, about 1.4% of the Total Value Locked (TVL) was at risk. The protocol asked affected LPs, which have been notified, to withdraw funds immediately.

Users can access step-by-step instructions on how to withdraw from the Balancer UI, an update posted on X (fka Twitter) noted.

Balancer Labs will publish a report detailing the stated vulnerability and the next steps.

Meanwhile, Balancer’s native token BAL reacted negatively to the news, plummeting from $3.55 to $3.40. At the time of writing, the token’s price was down 2.7%  after a slight upside in the past hour helped push it back to $3.48.