Why Balancer’s $1.4M hack recovery won’t pay LPs anytime soon
Balancer’s proposed V1 recovery plan would distribute 296.401711 ETH returned after an Aug. 31 exploit among liquidity providers in 120 affected pools. Pool shares would be based on each pool’s portion of attack-time losses, then divided among LPs according to holdings at the block immediately before the exploit. The proposal does not yet provide allocation tables or individual claim amounts, and the recovered ETH does not guarantee full reimbursement. Claimants would need to release Balancer-related parties from incident liabilities. As of Sept. 20, the proposal had no Snapshot vote link; the claim process and window remained unopened. Recovered exploit funds are separate from assets earmarked for BAL holders in a proposed protocol wind-down.
