Balancer Compromised: Protocol Urges Users to Cease All Interaction Immediately

Balancer, an Ethereum-based Automated Market Maker (AMM) and Liquidity pool aggregator, is in a critical situation. The protocol announced on its Twitter account on September 20 that its "frontend is under attack." Consequently, Balancer is advising users to stop all interactions with its User Interface immediately.

While Balancer itself has not confirmed that any funds were taken, on-chain analyst Zach XBT disclosed via Twitter that roughly $238K have been stolen due to this security exploit. 

According to the protocol, the attack was a DNS (Domain Name System) attack. The team is now in the process of resolving the issue and has stated that it's collaborating with "relevant parties" to recover its User Interface (UI).

In light of the situation, Balancer is urging users to steer clear of its websites, balancer.fi and app.balancer.fi, until further notice is given. By avoiding these sites, users can help to protect themselves from potential loss or theft of funds.

What is a DNS Attack?

For those unfamiliar with the term, a DNS attack is a type of cyber attack where the attacker gains unauthorized control over a domain's DNS settings. This can lead to the attacker redirecting web traffic to fraudulent websites or other malicious activities.