Balancer Labs to shut down following $110 million exploit, co-founder says in DAO post
Balancer Labs is shutting down as the corporate entity became a liability after a $110 million exploit.Summary
Balancer Labs, the corporate entity that incubated the decentralized finance (DeFi) protocol Balancer, is shutting down because it became a liability following a $110 million exploit in November 2025. Co-founder Fernando Martinelli stated that the exploit, which drained assets like osETH, WETH, and wstETH, created unsustainable legal exposure. Although Martinelli considered winding down the entire protocol, he opted for restructuring because the protocol still generates revenue. The proposed restructuring plan involves aggressive changes: cutting BAL emissions to zero, ending the veBAL governance model, having the DAO treasury capture 100% of protocol fees, and initiating a BAL buyback to offer holders a fair exit. Balancer's Total Value Locked (TVL) has dropped significantly from its peak of nearly $3.5 billion to $157 million, and the current revenue is insufficient to sustain current operations.
(Source：CoinDesk)