Balancer Exploit: How Tiny Swaps Nearly Destroyed One of the Largest AMMs

A recent exploit targeting Balancer’s v2 protocol resulted in a $120 million loss, highlighting the vulnerability of near-parity asset pools to small-scale attacks. The incident involved careful manipulation of precise swap calculations by malicious actors, ultimately leading to significant financial damage. SlowMist, a security firm, conducted an in-depth analysis and provided insights into the exploit’s mechanics.