After losing 110 million dollars to theft: Balancer DAO plans to distribute 8 million dollars to compensate users.

After suffering a major hacking attack in early November, resulting in losses of over $110 million, the decentralized finance protocol Balancer is working on an asset compensation plan, intending to allocate the recovered $8 million in funds to affected Liquidity Providers (LPs).

(Balancer suspected of being hacked for $116 million! Major security vulnerability in DeFi again )

White hat hackers and the internal team worked together to recover funds.

The attack occurred on November 3, when hackers exploited a vulnerability in the access control of the Balancer v2 smart contract, successfully stealing a large amount of funds. However, shortly after the incident, white hat hackers and Balancer's internal security team acted quickly and successfully recovered approximately $8 million in assets from multiple chains.

According to the RFC (Request For Comment) draft released by DAO contributor Xeonus, the funds will be distributed proportionally based on each user's pool asset snapshot at the time the attack occurred.

Following the Safe Harbor protocol, white hats are rewarded.

Balancer stated that the compensation program will be conducted according to its existing “Safe Harbor Agreement”. This agreement provides legal protection and rewards for ethical hackers, stipulates a cap of $1 million for white hat bounties per incident, and requires participants to complete KYC and sanction screening processes.

It is worth mentioning that on the Arbitrum network, several anonymous white hats have chosen to forgo identity verification and do not claim any rewards.

Assets can be recovered across multiple chains, and compensation will be distributed using the original tokens.

The assets recovered this time span across networks such as Ethereum, Polygon, Base, and Arbitrum, including various cryptocurrencies like WETH, rETH, WPOL, and MaticX. Balancer plans to distribute the compensation in the form of original tokens to Liquidity Providers, and users will receive corresponding compensation based on their holding ratio in each pool.

Currently, the team is developing an asset claiming mechanism. If the DAO passes the compensation proposal, users must accept the updated terms of use to claim the assets.

In addition, there are more assets awaiting further processing.

In addition to the 8 million dollars handled by the DAO, another 19.7 million dollars (in the form of osETH and osGNO) was recovered by the white hat hacker StakeWise, and this portion will be allocated by StakeWise.

In addition, the 4.1 million dollars recovered in collaboration with the security company Certora, although also belonging to the victim’s assets, is not applicable to the white hat bounty program due to the pre-existing contractual service terms.

The third major vulnerability, TVL and token value have plummeted significantly.

This hacking incident is the third major security incident faced by Balancer. According to DeFiLlama data, after the incident, Balancer's total locked value (TVL) plummeted from $775 million to approximately $258 million.

At the same time, the price of Balancer's native token BAL has also seen a sharp decline, dropping about 30% within a month, reflecting market concerns about the security of the protocol.

After this article was stolen for 110 million dollars: Balancer DAO plans to distribute 8 million dollars in compensation to users, first appeared in Chain News ABMedia.