Two community members have submitted a key proposal detailing the new Balancer reimbursement plan, aimed at compensating affected liquidity providers. Following the attack that drained massive funds from V2 pools across multiple chains, it seeks to restore approximately $8 million dollars recovered through security interventions and ethical hackers.
According to the technical document published this Thursday, the funds come from combined rescue operations executed during the crisis. Specifically, the protocol managed to recover a total close to $28 million dollars, although this specific proposal manages the distribution of the $8 million under direct control. On the other hand, the remaining $19.7 million in assets such as osETH and osGNO will be managed independently by the staking protocol StakeWise through its own governance. Additionally, white hat hackers will receive a 10% bounty, subject to rigorous identity verifications.
How did security experts manage to recover millions in vulnerable digital assets?
The partial recovery was possible thanks to the rapid coordinated action of external and internal actors under extreme pressure. A white hat hacker known under the pseudonym “Anon #1” was fundamental in rescuing $2.68 million dollars on the Polygon network, securing critical tokens such as WPOL, MaticX, and TruMATIC. Likewise, the internal team coordinated urgent efforts with the security firm Certora to save an additional $4.1 million from metastable pools on Ethereum, Optimism, and Arbitrum before attackers could exploit them.
To access these funds recovered under the Balancer reimbursement plan, users will be required to accept strict new legal terms. It is mandatory that affected parties release Balancer Labs and its DAO from legal liability through a digital signature linked to their wallet to process the payment. However, there is a limited claim window of 180 days, after which unclaimed assets could be reassigned through future voting. This occurs in an environment where the DeFi sector has suffered losses exceeding $2.2 billion so far in 2025.
The community must now debate and vote on the final viability and execution of this restitution initiative. If approved, it will set an important precedent on how decentralized organizations manage post-exploitation security crises. It is expected that in the coming days the exact dates for the start of payments will be defined for victims who meet the verification requirements.
