Balancer (BAL) recently announced that they would fully compensate the users affected by an exploit that had been reported back in May by Hex Capital. That exploit was left unnoticed and vulnerable leading to the draining of funds in relation to the STA and STONK tokens that were available on the Balancer Exchange liquidity platform this week. A sum of over $450,000 will be compensated to the users affected and Hex Capital will be awarded the highest bug bounty available as Balancer apologizes for the oversight on their end.
Balancer is now victim one of the first major DeFi attacks we’ve seen this year as many black hat hackers try to find vulnerabilities and exploits in projects that have rushed a product to market without securing the contracts the functions on the work are running on. Decentralized Finance or “DeFi” can be incredibly lucrative, especially seeing as the industry is still in its infancy, but bug bounties and a robust bug reporting system are needed to keep users safe, as Balancer users will now know too well. Balancer will now be starting a third major audit from OpenZeppelin which the Team claims was already in the plans before this most recent incident.
Balancer Labs will only reimburse the losses of liquidity providers in this attack because we believe we could and should have done better in avoiding this, given the context of the bug bounty report we received prior to the attackFernando Martinelli – CEO of Balancer
At the time of writing, Balancer (BAL) tokens are worth $9.98 USD and the project boasts an overall market capitalization of just over $60 million USD. BAL tokens have taken a -11% hit over 24 hours as the spotlight continues to be firmly placed on Balancer while they work through the aftermath of this attack.