Blockchain

Balancer Labs to Reimburse All Liquidity Providers Who Lost Funds in Recent Cyber Attack

DeFi blockchain protocol Balancer Labs that it will fully reimburse all the liquidity providers who lost their funds as a result of the cyberattack on the block a couple of days back. As per a tweet, Balancer Labs will also pay the highest bounty available to Hex Capital, who pointed out the bug to their team.

The attack was first noticed on Sunday, after which Balancer Labs published a detailed account of the incident on Medium. They said,

Balancer Labs

In a separate blog on Medium yesterday, Balancer Labs said that though they will fully reimburse the liquidity providers, it will only be for this particular attack. This, they added, isn’t setting a precedent for a future loss that might occur on the Balancer block. There is a certain level of risk involved in using DeFi applications and users must be aware of it, they further added.

Cyber attacks of crypto are quite common, and users have lost billions of dollars to hackers. However, the stand taken by Balancer Labs is praiseworthy, as very few companies take up to themselves to reimburse their users, even for the first time. Commending the efforts taken by the DeFi protocol, Philip Arthur Moore, popular developer and research head of Frontier Wallet said that the steps Balancer Labs has taken show how such incidents must be handled. In his tweet, Moore praised Balancer Labs and its CEO, Fernando Martinelli, for being honest about their shortcomings.

Adam Billingsley

Adam Billingsley is a lead blockchain news writer at CryptonewsZ. His work revolves around the applications of blockchain technology and cryptocurrencies like bitcoin, Ripple, and other coins.

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