Despite ongoing growth in the DeFi industry, security concerns remain in place today. Balancer, a project gained traction last week, has gone through a security incident over the weekend.
Balancer is one of the DeFi projects gaining a lot of attention lately.
A Major Security Incident for Balancer
This is in line with how all DeFi projects are evolving as of late.
Cryptocurrency enthusiasts want to make money at all costs, and passive income is always the best option.
For Balancer, a recent security incident does raise a lot of questions.
An attacker drained funds from 2 pools containing tokens with transfer fees.
According to the blog post, this was made possible thanks to a flash loan from dYdX, and using Wrapped Ethereum.
It is a security incident that took the Balancer team by surprise, as they weren’t aware of this attack vector.
For now, it does not appear as if this will have that big of an impact on the platform.
Balancer as a platform will undergo some changes, as new security measures need to be put in place.
It is also worth noting that the previous 2 audits of Balancer did not highlight this problem either.
A third audit will occur in the near future, as well as an internal review of the platform.