Balancer Protocol Undergoes Restructuring After Massive Hack

Decentralized finance (DeFi) protocol Balancer is undergoing significant changes after being impacted by a major security incident in November 2022.

A $116 million hack led to a substantial decrease in Total Value Locked (TVL), which has continued to decline since then. The team behind Balancer, Balancer Labs, announced the shutdown of the entity due to financial constraints and ongoing legal exposure.

However, despite these challenges, the protocol is expected to continue operating under a revised structure. Executives have proposed a restructuring plan, which involves reducing costs, cutting emissions, and reorganizing fees to enable more revenue capture by the Balancer DAO.