Notional Faces Significant Losses Due to Balancer Vulnerability

According to Odaily, Notional has confirmed that its V3 protocol on the Ethereum mainnet and Arbitrum has incurred approximately 721.6 ETH in bad debt due to a Balancer vulnerability. This includes 641.4 ETH on the mainnet and 80.2 ETH on Arbitrum. Users of the Balancer/Aura leveraged vaults are facing a total loss, while ETH lenders and liquidity providers on both platforms will see a significant reduction in account value. Some users with ETH-collateralized loans are affected, while others remain unaffected. Notional announced that due to the substantial scale of the bad debt, the V3 protocol will be gradually shut down on both the Ethereum mainnet and Arbitrum. A detailed asset withdrawal plan will be released soon. For users involved in cross-currency lending, positions will be automatically migrated to Aave to prevent liquidation risks during the shutdown. The team plans to release a comprehensive report detailing the reduction ratios for ETH lenders and liquidity providers, along with remedial measures and calculation methods. They are committed to recovering assets and minimizing user losses as much as possible.