The post Balancer Proposes Returning $8 Million in Recovered Funds to Liquidity Providers After DeFi Exploit appeared on BitcoinEthereumNews.com.

Balancer’s exploit recovery plan aims to distribute approximately $8 million in rescued funds back to affected liquidity providers across multiple networks, following a major DeFi incident that drained over $128 million from V2 pools. This non-socialized approach ensures proportional reimbursements based on pre-exploit holdings, with whitehat bounties capped at 10%. Balancer identified six whitehat actors who recovered about $3.9 million during the exploit across chains like Polygon. The protocol’s internal teams, working with security firm Certora, salvaged an additional $4.1 million from at-risk pools on Ethereum, Optimism, and Arbitrum. StakeWise will handle the return of $19.7 million in osETH and osGNO separately through its governance, totaling around $28 million in overall recoveries, according to the proposal from Balancer community members. Discover Balancer exploit recovery details: Framework returns $8M to liquidity providers after $128M DeFi drain. Non-socialized reimbursements, whitehat bounties explained. Stay informed on crypto security updates. What is the Balancer Exploit Recovery Plan? Balancer exploit recovery involves a structured framework proposed by community members to reimburse liquidity providers for losses from a recent DeFi incident that affected V2 pools across five chains. The plan focuses on distributing roughly $8 million in funds recovered through whitehat interventions and internal efforts, ensuring fair returns without socializing losses across the entire ecosystem. This approach prioritizes transparency and compliance with the Safe Harbor Agreement for ethical recoveries. How Does Balancer Handle Whitehat Rescues in Exploit Recovery? The Balancer DAO’s Safe Harbor Agreement outlines clear terms for whitehat actors, offering bounties paid in the same tokens as recovered assets, without direct retention from the funds. During the exploit, six whitehat rescuers recovered approximately $3.9 million, with anonymous actor “Anon #1” leading efforts on Polygon by salvaging 8 million WPOL, 6.8 million MaticX, 2.9 million TruMATIC, and 72,000 stMATIC tokens, totaling $2.68 million. Bounties are limited…

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Filed under: News - @ November 28, 2025 8:28 am