Balancer warns of a bug in legacy V1 contracts that can drain LP funds; users advised to withdraw proportionally while other Balancer products remain unaffected.
Security & Exploits ·
Balancer has alerted users to a vulnerability in its legacy V1 contracts that poses a risk of draining liquidity provider funds. The protocol advised LPs to withdraw their assets proportionally as a precaution. However, the warning does not affect other Balancer products, which continue to operate normally.
The V1 contracts represent an earlier iteration of the Balancer protocol. The specific mechanics of how the bug enables fund drainage and whether it requires active exploitation remain unclear from available details. The scope of affected liquidity and the timeline for remediation have not been disclosed.
It is not yet known whether the vulnerability has already been exploited, what technical steps led to its discovery, or whether a patch or full contract deprecation is planned. Users of current Balancer products on other versions appear unaffected, though the incident underscores ongoing security challenges within the protocol following its 2025 V2 exploit.