Phalcon identifies the root cause of the Balancer hack, now up to 120M drained

Hacks are fucked for eveyrone involved...but this, " Due to rounding down when scaling token amounts, the computed Δx becomes slightly smaller (8.918 to 8), leading to an underestimated Δy and thus a smaller invariant (D from Curve’s StableSwap model). Since BPT price = D / totalSupply, the BPT price becomes artificially deflated.", reminds me of Office Space, RIP

Top comment by @Spencer420

More coverage

• Balancer Exploit Explained: What Went Wrong and Why v3 Is Safe (certora.com)
• Balancer v2 Exploit: Preliminary Incident Report (x.com)
• How an Attacker Drained $128M from Balancer Through Rounding ... (research.checkpoint.com)
• Balancer's $128M Exploit: $8M Recovery Plan and KYC ... - OpenExO (openexo.com)
• Understanding the Balancer v2 Exploit - OpenZeppelin (openzeppelin.com)

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