Notional has been hit hard by a vulnerability discovered in the Balancer protocol, resulting in significant financial losses for users and impacting the stability of its own platform. According to Odaily, the company’s V3 protocol on both Ethereum mainnet and Arbitrum suffered approximately 721.6 ETH in bad debt due to this issue. This loss includes a substantial amount of 641.4 ETH on the Ethereum mainnet and 80.2 ETH on Arbitrum. Users who held positions within Balancer/Aura leveraged vaults are facing total losses, while ETH lenders and liquidity providers have seen their account values significantly decrease. While some users with ETH-collateralized loans may experience impact, others remain unaffected. Notional has announced the immediate shutdown of its V3 protocol on both Ethereum mainnet and Arbitrum to mitigate further losses. A detailed asset withdrawal plan will be released soon. For cross-currency lending positions, automatic migration to Aave will prevent liquidation risks during this transition. A comprehensive report detailing the reduction ratios for ETH lenders and liquidity providers will also be released, along with a breakdown of remedial measures and calculation methods. The team remains dedicated to recovering assets and minimizing user losses as much as possible.