The post Balancer to repay liquidity providers $8M after v2 exploit appeared on BitcoinEthereumNews.com.

A new proposal on Balancer’s governance forum sets the stage for how the protocol plans to handle the next phase of its recovery effort. Summary Balancer has proposed a framework to distribute $8M in rescued assets after the V2 exploit. Whitehats would receive 10% bounties, while LP repayments would be pro-rata and paid in-kind. The Nov. 3 attack drained over $128M, prompting coordinated recoveries and community-wide mitigation efforts. Balancer has outlined a reimbursement plan that would return roughly $8 million in rescued assets to liquidity providers affected during the v2 exploit. The Nov. 27 proposal is the protocol’s first concrete step toward settling losses after one of decentralized finance’s largest breaches this year. How the repayment plan would work The proposal details how funds recovered by whitehat responders and internal rescue teams will be distributed. According to Balancer (BAL), the $8 million was secured across several networks after the exploit, while an additional $19.7 million tied to osETH and osGNO is being processed separately by StakeWise. Under the plan, whitehat actors who intervened during the attack would receive bounties equal to 10% of the assets they helped recover, paid in the same tokens they returned. Balancer’s Safe Harbor Agreement requires full identity verification, KYC screening, and sanctions checks before payouts are made. The foundation has already cleared compliance for the whitehats involved, though identities will remain confidential. The proposal also outlines how internally recovered funds, secured in coordination with Certora, will be treated. Because Certora acted under an ongoing service agreement, these recoveries fall outside the bounty program. Instead, the tokens will be returned directly to the affected pools. Liquidity providers would receive repayments on a pro-rata basis, matched to their BPT holdings at snapshot blocks taken just before the first exploit transactions on each network.  The distribution would be…

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Filed under: News - @ November 28, 2025 3:28 am