Balancer, a prominent decentralized finance protocol, has revealed a preliminary report on a major hack that took place on November 3, 2025. According to the results published in the material, the incident, caused by a technical flaw in its V2 pools, resulted in the theft of $128 million across seven different blockchains, raising concerns about security in the DeFi space.
Hack Exploits Rounding Error
The hack exploited a simple rounding error, allowing attackers to manipulate batch swaps and drain liquidity from the platform. This vulnerability led to a staggering 58% drop in the total value locked (TVL) in Balancer, plummeting from $443 million to just $186 million within two days. Ethereum was hit the hardest, suffering losses amounting to $99 million.
Response and Recovery Efforts
In response to the breach, ethical hacker teams have successfully recovered $33 million so far. Balancer's team acted swiftly to suspend the affected pools, aiming to mitigate further losses and protect users. A comprehensive report detailing the recovery steps for impacted users is expected to be released soon. The protocol works to restore trust and security in its operations.
In light of the recent $128 million hack affecting Balancer, financial institutions are now urged to adopt a Zero Trust framework to enhance API security. For more details, see the report on API security.
