Balancer Issues Warning to LPs: Remove Certain Pools ASAP
-Balancer has warned certain liquidity providers to remove their LPs due to an issue related to some of the service’s pools
-Protocol fees have been set to zero to mitigate the issue for some pools, and the issue will be publicly disclosed in the near future
-If a pool’s transaction fees have been set to zero by the emergency multisig, no further action is needed
Balancer, the decentralized finance protocol, has issued a warning to certain liquidity providers that they should remove their liquidity pools „ASAP“ due to an ongoing issue related to some of its pools. On Jan. 6th, at 2:03 am UTC, Balancer took to Twitter to alert users of the issue.
The team stated that some pools have had their fees set to zero by the Balancer emergency multisig, in order to mitigate the issue and avoid any further damage. They also stated that a list of the pools which need to be withdrawn included DOLA/bb-a-USD on Ethereum, It’s MAI Life and Smells Like Spartan Spirit on Optimism, and Tenacious Dollar on Fantom. Furthermore, the team indicated that not all effects of the still-unknown issue could be mitigated in this way.
Going forward, the Balancer team stated that more details of the issue would be publicly disclosed in the near future. They also specified that if a pool’s transaction fees have been set to zero by the emergency multisig, no further action is needed on the part of the liquidity provider.
The issue serves as a reminder of the importance of exercising caution when investing in DeFi services and the need to remain aware of potential risks. As DeFi protocols continue to grow in complexity and popularity, it is more important than ever to stay up to date on new developments in order to avoid any potential losses.