DeFi liquidity protocol Balancer is staring down yet another security vulnerability, this time targeting its user interface.
The platform issued a notice on social media Tuesday evening, urging users not to interact with the main Balancer UI until further notice as they investigate. Investors and users of Balancer are advised to remain vigilant and await further updates.
Crypto sleuth ZachXBT, revealed on X, formerly Twitter, that the stolen funds are being funneled into a specific Ethereum address. Approximately $238,000 has reportedly been pilfered so far.
Analysis of the address shows it currently holds 68 ether (ETH) valued at more than $111,000, based on the current ETH price of $1,636.
In the last eight hours, a series of ERC-20 token transfers involving the address labeled “Balancer Attacker” can be viewed from Etherscan, a popular analytics tool.
Tokens, including Balancer’s native BAL token, liquid staked ether, Aave’s wrapped tokens, and several others, have so far been transferred in and out of the address.
The developments Wednesday follow a series of assaults against the protocol in recent weeks including an exploit of a critical vulnerability in its v2 pools late last month.
Built on the Ethereum blockchain, Balancer functions as both an automated market maker and a liquidity protocol, allowing users to trade tokens directly from its liquidity pools, without the need for a traditional order book.
In recent hours, Balancer’s native token (BAL) has experienced some volatility, though the full extent of the financial fallout remains to be seen. BAL is down 3.2% on the day from a top of $3.44 to $3.27, exchange data shows.
Balancer is not the first DeFi platform to fall victim to a cyber-attack this year. There has been a noticeable uptick in security breaches targeting DeFi projects in recent months, leading to a broader conversation in the industry about the need for enhanced security measures.
The Balancer team said it is currently investigating the issue, and it’s yet unclear how the attackers managed to exploit the system. Blockworks has reached out to learn more.
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