A recovery plan for Balancer V1 aims to distribute 296.401711 ETHârecovered following an exploit on Aug. 31âamong liquidity providers across 120 legacy pools, though exact claim amounts for individual addresses remain unavailable.
According to the proposal, tokens valued at approximately $1.39 million during the attack were drained from these pools. It details five distinct ETH returns sent to the Balancer DAO Multisig between Sept. 8 and Sept. 16, contributed by the primary greyhat, three anonymous whitehats, and the block builder Ultrasound.money.
The figure of 296.401711 ETH simply represents the total recorded recovery rather than a guarantee of complete reimbursement. Because historical dollar values measure the initial losses while the recovered funds exist in ETH, the document omits any specific recovery percentage.
How Balancer would allocate the recovered ETH
Under this strategy, Balancer would initially distribute the recovered ETH to individual pools based on each pool’s proportion of the aggregate dollar-denominated loss during the incident. Subsequently, each pool’s share would be divided among liquidity providers according to their respective pool-token balances at Ethereum block 25,872,248.
That particular block immediately preceded the initial exploit transaction at block 25,872,249. Relying on a single pre-incident snapshot enables the inclusion of all 120 pools, encompassing those impacted later by copycat attacks.
Although the mathematical formula establishes how claims are weighted, the forum post published on Sept. 18 omits the per-pool allocation table, holder directories, and specific per-address figures. Until those documents become available, liquidity providers cannot compute their precise ETH distributions.
Claims await a vote and address-level data
Accepting any forthcoming payout also entails legal prerequisites. Claimants must submit digital consent releasing Balancer Labs, the Balancer DAO, the Balancer Foundation, associated entities, and service providers from all liability concerning the breach. Distributions will be issued in ETH, whereas claims involving contracts and multisig wallets will be evaluated individually.
As of Sept. 20, the Sept. 18 forum post retained the identifier BIP-XXX and lacked any link to a Snapshot vote. The documentation specifies that claim metrics will be published and a distribution system established only if the measure successfully passes, leaving the V1 claim period closed without scheduled start or conclusion dates.
This pool of recovered funds is kept distinct from assets tied to Balancer’s proposed shutdown. The wind-down documentation clarifies that capital recovered from protocol exploits belongs directly to affected liquidity providers, keeping it separate from the treasury allocation designated for BAL token holdersâa distinction previously highlighted by CryptoSlate.
While this separation safeguards recovered hack assets for liquidity providers, the pending governance vote and absent allocation figures mean the Balancer V1 recovery proposal currently outlines a pathway rather than a finalized payout.
