Balancer Issues Urgent Warning to Legacy V1 Liquidity Providers
Balancer has issued a warning to liquidity providers (LPs) on August 31, advising them to withdraw their funds from its legacy V1 pools due to a critical bug that allows for the potential draining of LP assets. The protocol highlighted that these deprecated pools are non-pausable, meaning that users must take immediate action to protect their investments without intervention from the protocol itself.
The warning comes in light of a security assessment by blockchain firm SlowMist, which estimated that a single Balancer V1 pool had lost approximately $234,000. This loss was attributed to a rounding flaw in the `joinswapPoolAmountOut` function, which allowed an attacker to manipulate the pool's reserves and drain assets such as DPI, USDC, WETH, and WBTC.
Balancer has instructed users to utilize its legacy withdrawal interface to exit their positions proportionally. The interface allows users to connect their wallets or manually input pool addresses to check their holdings. However, the protocol did not disclose the total value remaining in the affected pools or provide specific addresses for these pools.
© 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: KLEA News