Thanks to swift intervention from security partners, whitehat rescuers, and blockchain foundations, a significant portion of the funds was protected or recovered.
The incident highlights both the risks and resilience of decentralized finance, offering lessons for investors and beginners alike. Let’s discover more about what happened to Balancer
Understanding the Exploit
The vulnerability stemmed from a rounding error in the “exact out” swap process. In simple terms, this type of swap allows users to request a specific amount of tokens, with the system calculating how much they need to deposit. A miscalculation caused the input to be slightly underestimated, allowing attackers to extract funds without paying the correct amount. The exploit required three conditions: the rounding error, imprecise rate providers, and low liquidity. Only Composable Stable Pools on V2 met all three conditions, leaving other Balancer pools, including V3, unaffected.
Today, we released our full post-mortem on the recent exploit.
I encourage everyone to read it to understand what happened, how we responded, and our path forward.
This is not the end. We remain fully dedicated to our recovery efforts and are exploring every avenue to restore… https://t.co/ccLogIRIeS
— Marcus | Balancer 🦇🔊 (@Marcus_Balancer) November 18, 2025
The attackers first drained the pool with an “exitSwap,” exploiting the rounding error in a low liquidity state. They then executed a series of carefully calculated swaps, gradually lowering the pool’s token value and allowing the extraction of large sums. Unlike typical hacks, the stolen assets often accumulated internally before being withdrawn, giving security teams precious minutes to act.
If you had funds on BEX during the Balancer incident, please check your status.
The vast majority of impacted stablecoin funds on BEX have now been claimed.
For ETH and BERA pools, recovered funds are also available. Over 90% of ETH has been claimed, but only about 40% of BERA…
— Berachain Foundation 🐻⛓ (@berachain) November 18, 2025
A real-world example of effective mitigation came from Crypto.com and Ether.fi, who successfully withdrew funds during the emergency pause, limiting losses. Whitehat rescuers operating under the SEAL Safe Harbor Agreement also recovered $4.6 million across multiple chains. Coordinated responses across Ethereum, Polygon, Arbitrum, Base, and Optimism helped secure around $45.7 million in funds.
Underreported: over $20M so far of the Balancer hack has been saved by white hats. The media may have moved on, but victims have not.
Hats off to white hats everywhere—the unsung protectors of DeFi. They are the superheroes of crypto, and they do it for free. 🫡
h/t @_SEAL_Org https://t.co/7HzmcSzUUB
— Haseeb ＞|＜ (@hosseeb) November 12, 2025
Lessons and Moving Forward
Balancer’s post-mortem emphasizes the importance of continuous security audits and the value of strong ecosystem partnerships. V3’s architecture, with strict rounding controls and simplified math, successfully prevented similar attacks. Recent trends show more protocols adopting layered defenses and proactive whitehat programs to safeguard user assets.
Cyfrin Audits Co-founder Patrick Collins talks about the recent Balancer exploit and cloud chasers posting fake hack analysis:
“Be careful of KOLs who don’t know what the f*ck they’re talking about. Most of them don’t.” pic.twitter.com/24wUSnLqSU
— The Rollup (@therollupco) November 6, 2025
The incident also reinforces the need for liquidity providers to stay informed and proactive. Balancer encourages users to migrate from V2 stable pools to V3, offering a safer and more robust platform. Balancer will return recovered funds to users proportionally, and ongoing legal and technical teams are actively reclaiming additional losses.
Disclaimer
The information provided by Altcoin Buzz is not financial advice. It is intended solely for educational, entertainment, and informational purposes. Any opinions or strategies shared are those of the writer/reviewers, and their risk tolerance may differ from yours. We are not liable for any losses you may incur from investments related to the information given. Bitcoin and other cryptocurrencies are high-risk assets; therefore, conduct thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
The post Balancer Shares Full Post-Mortem on Recent Exploit appeared first on Altcoin Buzz.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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