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The Balancer DAO has begun discussions to allocate approximately $8 million of recovered assets to the affected LPs

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2025-11-27 23:10:53
Weeks after a major breach in the Balancer v2 vault led to the loss of more than $110 million, the Balancer DAO has begun discussing a plan to distribute approximately $8 million of recovered assets to affected LPs. The proposal includes structured rewards for white hat hackers and compensation for users based on snapshots of user pool assets at the time of exploitation.
In addition, $19.70 million of osETH and osGNO recovered by StakeWise will be dealt with separately; $4.10 million recovered internally in coordination with Certora is not eligible for the bounty due to a previous agreement. The exploit was caused by a smart contract flaw, marking Balancer's third major security incident and causing the total locked value (TVL) to plummet from about $775 million to $258 million, while the BAL token value also lost about 30%.
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