Balancer’s $120M Fiasco: Swaps Gone Rogue! 🎭💸

Dear patrons of the decentralized theatre, behold! On November 3rd, Balancer v2 suffered a calamity most exquisite-a loss of $120 million, nay, a symphony of chaos orchestrated by the humblest of flaws. SlowMist, our vigilant chorus, hath unveiled the tragedy: a precision loss in integer arithmetic, that slyest of villains, which conspired to unbalance Composable Stable Pools (designed for assets so near-parity they might as well hold hands and waltz).

In this tragi-comedy, attackers wielded the batch swap function like a rapier, chaining transactions to exploit microscopic discrepancies. Let us now dissect their Machiavellian ballet:

A Postmortem in Three Acts 🎭

Act I: The villain swapped BPT for liquidity tokens, draining pools like a parched gardener at a wine fountain. “Pray, let us thin the liquidity,” they mused, setting the stage for precision errors.

Act II: OsETH and WETH were swapped with the delicacy of a courtier adjusting a cravat, amplifying precision errors until they ballooned into fortunes. “How quaint,” quipped the attacker, “that math cannot count properly when liquidity flees!”

Act III: Liquidity restored, pools balanced, and errors compounded-our hero(?) emerged with profits, leaving the protocol gasping like a fish out of water. A standing ovation for arbitrage’s dark arts!

SlowMist, ever the detective, traced funds through Tornado Cash’s labyrinthine corridors, gas.zip’s cross-chain antics, and Ethereum vaults brimming with ETH. One might marvel at the infrastructure… if it weren’t so thoroughly compromised.

The Aftermath: A Comedy of Errors 🎭

Remediation efforts? A flurry of pauses, factory shutdowns, and “killed” gauges! Brave souls withdrew LPs while whitehats played whack-a-mole with $21 million in recovered funds. Yet, as Molière warned: “Beware the flaw that hides in the decimal!”

To auditors and developers, SlowMist implores: Test extremes! Scrutinize low-liquidity precision! For in this farce, the moral is clear: Even AMMs may stumble when math meets mischief. 🕵️♂️💸

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2025-11-07 10:27