Balancer warns some LPs to remove liquidity ASAP because of a ‘related issue’
The team did not disclose what the issue is, but stated that it “cannot be mitigated by the emergency DAO.”
In a Jan. 6 tweet, DeFi protocol Balancer warned certain liquidity providers to remove their LPs “ASAP” due to an ongoing issue related to some of the service’s pools. Some pools have had their fees set to zero by the balancer emergency multisig, but the team indicated that not all effects of the still unknown issue could be mitigated in this way.
Balancer listed the pools that need to be withdrawn to include DOLA / bb-a-USD on Ethereum, It’s MAI life and Smells Like Spartan Spirit on Optimism, and Tenacious Dollar on Fantom.
IMPORTANT: Because of a related issue, LPs of the following pools should remove their liquidity ASAP as the issue cannot be mitigated by the emergency DAO. https://t.co/WcBeBvjdY2
— Balancer (@Balancer) January 6, 2023
At 2:03 a.m. UTC on January 6, Balancer took to Twitter to announce an “issue” with liquidity pools on the platform. It stated that protocol fees have been set to zero to mitigate the issue, and that more details “will be publicly disclosed in the near future.”
Protocol fees of some Balancer pools have been set to 0 to avoid an issue that is now mitigated and will be publicly disclosed in the near future.
This has been done by the emergency multisig, a 4/7 comprised of BLabs engineers and Balancer Maxis: https://t.co/AZo7yBQD17
— Balancer (@Balancer) January 6, 2023
This story is ongoing, and will be updated as more information comes in.