Due to the potential loss of $6.3 Mn, Balancer has advised its liquidity providers to withdraw funds from five pools with immediate effect.
Independent exchange In five pools totaling $6.3 million, Balancer has issued a notice to its liquidity providers, asking them to withdraw their assets. The DeFi gaint has been recommending solutions to fix what appears to be a part of a larger possible exploit or a technical flaw.
On January 6, at 2:03 a.m. UTC, Balancer announced on Twitter that there was a “problem” with the platform’s liquidity pools. The DeFi application announced that the protocol costs had been lowered to zero as a solution to the issue and that more information would be made available to the public soon.
The team also made clear that not all of the effects of the mystery problem’s consequences would be mitigated by this specific technique.
A list of the pools that require money to be removed from them was supplied by Balancer. These pools are Tenacious Dollar on Fantom, It’s MAI life and Smells Like Spartan Spirit on Optimism, and DOLA / bb-a-USD on Ethereum.
The DOLA / bb-a-USD pool is the largest of the three, currently managing assets valued at $3.6 million. The DeFi protocol, an automated market maker that allows anybody to create or add liquidity to trading pools while earning customisable trade fees, is powered by the Balancer token, an Ethereum-based asset. As of right now, Balancer (BAL) is being traded at a price of $5.35.
According to cryptocurrency market tracker CoinMarketCap, this reflects a growth of 1.17% over the last hour as opposed to a decrease of 1.19% over the previous 24 hours.
