Balancer Suffers $128 Million Exploit Due to Smart Contract Vulnerability

On November 3, 2025, the Balancer decentralized finance protocol experienced a significant exploit that resulted in the theft of over $128 million from its V2 pools. The attack was attributed to a rounding error vulnerability in the smart contract code, which allowed the attacker to drain funds rapidly. Affected liquidity providers are set to receive $8 million in compensation as part of a reimbursement plan proposed by the Balancer community.