Crypto

Balancer Warns Legacy V1 LPs to Exit Amid Drain Bug

Guavy AI Editorial Team Published August 31, 2026

Instruments

BTC ETH USDC

Balancer has warned its users to withdraw from its legacy V1 liquidity pools after discovering a bug that allows LP funds to be drained. The protocol stated that the deprecated pools are non-pausable, leaving users as the immediate line of defense against potential losses.

The issue was attributed to a fixed-point rounding flaw in the `joinswapPoolAmountOut` path, which allowed an attacker to drain roughly $234,000 from one V1 pool. SlowMist estimated that the loss occurred on August 31 and involved the draining of DPI, USDC, WETH, and WBTC.

Balancer directed users to exit proportionally through its legacy withdrawal interface, stating that other products are not affected by the bug. The protocol also provided documentation for using the tool to scan positions against a bundled pool list and support proportional exits from V1 core and smart pools.

Balancer Warns Legacy V1 LPs to Exit Amid Drain Bug

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