Balancer DAO has begun discussions on the proposed distribution of approximately $8 million in recovered assets to affected LPs.

Golden Finance reported that after the Balancer v2 vault was attacked due to a significant vulnerability, resulting in over 110 million dollars in funds being lost for several weeks, Balancer DAO has begun discussing a plan to allocate approximately 8 million dollars of recovered assets to the affected LPs. The proposed plan includes providing structured rewards for white hat hackers and compensating users based on the user pool asset snapshot data at the time of the exploit. Additionally, the 1.97 million dollars of osETH and osGNO recovered by StakeWise will be handled separately; the 4.1 million dollars recovered internally in collaboration with Certora does not meet the bounty conditions due to a prior agreement. This exploit was caused by a defect in the smart contract, marking the third major security incident that Balancer has encountered, and causing the total value locked (TVL) to plummet from approximately 775 million dollars to 258 million dollars, while the value of the BAL token has also lost about 30%.