Balancer released a security incident analysis report at the end of August: the main network lost approximately US$980,000 and Optimism lost US$215,000.

Odaily News DeFi liquidity protocol Balancer released a post-mortem analysis report on the security incident at the end of August. The report stated that in this security incident, the total loss on the main network was approximately US$980,000, and the loss on Optimism was US$215,000. Overall, there are two vulnerabilities in Linear Pool, and they have been present since 2021. One is discovered and reported by white hats, the other is discovered and exploited by black hats. Given the timing, it is likely that Black Hat would never have found the second vector without the initial disclosure (mainly the pool list). The vulnerabilities themselves are mostly insignificant, but their interaction with other platform features, in the context of nested enhancement pools, allows the vulnerabilities to be exploited. Balancer remains committed to innovative liquidity staking and other yield products and overall capital efficiency, but the initial approach was too complex and uncertain to be fully rolled out. Therefore, the team is phasing out Linear Pool and has started working on new ideas on how to do it better, in a simpler and safer way, with higher (even 100%) efficiency. Previously, at the end of August, Balancer issued a vulnerability notice stating that some funds were at risk; later, Balancer stated that it had developed mitigation procedures to reduce the risk, but it was unable to suspend the affected pools and urged users to immediately use the user interface (UI) to exit the affected pools. LP, due to Balancer LP’s vigilance and prompt action, the vast majority of liquidity that was initially considered risky was withdrawn.