Summary
Balancer V2 is a decentralized automated market maker (AMM) protocol launched in 2021 on Ethereum and multiple chains that separates AMM logic from token custody via a central Vault architecture. The protocol has experienced at least four documented security incidents across its V1 and V2 deployments, including a November 2025 exploit that drained approximately $128 million and directly led to the dissolution of Balancer Labs, the corporate entity behind the protocol, announced in March 2026.
Connected Entities
1 entities- + 1 more
Timeline(11 events)
2020-06-29
Balancer V1 exploited via STA deflationary token flash loan attack; over $500,000 stolen. Prior bug report allegedly ignored.
2021-05-01
Balancer V2 officially launched on Ethereum mainnet with new centralized Vault architecture.
2022-05-01
Balancer launches bug bounty program on Immunefi with up to $1,000,000 maximum payout.
2022-08-01
Rounding vulnerability exploited in V2 composable stable pools for approximately $108,843.
2022-10-10
Balancer and Certora launch the Balancer Certora Security Accelerator for projects building on the protocol.
2023-08-22
Balancer publicly discloses critical vulnerability in V2 boosted pools across eight blockchains; LPs urged to withdraw.
2023-08-25
Balancer states 99.7% of at-risk liquidity secured; approximately $565,199 remains at risk.
2023-08-27
Attackers exploit the disclosed vulnerability via flash loans, stealing approximately $979,000 in DAI from Balancer V2 boosted pools.
2025-11-03
Critical exploit drains approximately $128 million from Balancer V2 Composable Stable Pools across six chains in under 30 minutes via manageUserBalance access control flaw and rounding error. Attacker funded via Tornado Cash.
2026-03-23
Co-founder Fernando Martinelli posts governance announcement proposing dissolution of Balancer Labs corporate entity; essential staff to transition to Balancer OpCo.
2026-03-24
Balancer Labs shutdown announcement covered by CoinDesk and major crypto outlets; TVL reported at $157 million, down 95% from 2021 peak of $3.5 billion.
Decision Log
- hash: 7XmJbcPf98HriJq8u9p1m9PEtuENH6BzcxW41y8S9y5u
- hash: HTFnhGNKS9iFpvvKnzhDQSmPKDANGu1TfaYLpp98zSsH
- hash: C4iRDLPCj5jwMcSJTBSU7x5pycuGBMA8McCiDGKB4Fjh
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:38 AM
last updated: 6/14/2026, 11:16:17 PM
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