Balancer Hack: $116 Million Siphoned Off in Sophisticated Code Exploit

The decentralized finance (DeFi) protocol Balancer released a preliminary post-mortem report on Wednesday detailing the cause of a significant exploit that led to the theft of $116 million. The attack targeted Balancer v2 Stable Pools and Composable Stable v5 pools, while other pool types remained unaffected. The hacker exploited vulnerabilities in the code using BatchSwaps, which bundle multiple actions into a single transaction, including flashloans, and an exploit of the upscale rounding function within Stable Pools.