Ethereum News Update: 11 Security Reviews, $128 Million Gone—The DeFi Audit Dilemma Unveiled
- StakeWise DAO recovered 5,041 osETH and 13,495 osGNO from Balancer's $128M exploit, partially addressing the breach. - Attackers exploited token invariant math in V2 Composable Stable Pools despite 11 audits by top firms since 2021. - The breach spread across Ethereum, Base, Polygon, and Arbitrum, with Ethereum suffering most losses. - StakeWise's success highlights partial asset recovery potential but underscores DeFi's vulnerability to invariant manipulation attacks. - Industry faces audit paradox as 2
StakeWise DAO has reported the successful retrieval of 5,041 osETH and 13,495 osGNO from the
The breach, initially disclosed on November 3, involved a complex manipulation of Balancer’s liquidity pools. The attacker exploited token invariants—mathematical principles that regulate token exchanges—to secure advantageous rates and withdraw funds, DLNews reported. Despite having undergone 11 audits by leading firms such as OpenZeppelin, Trail of Bits, Certora, and ABDK since 2021, the platform’s smart contracts were still compromised, as outlined in a
Balancer clarified that the incident was "limited to V2 Composable Stable Pools" and did not impact V3 or other pools, according to Cointelegraph. Nevertheless, the exploit affected several blockchains, including
The recovery of osETH and osGNO—tokens representing staked Ethereum—by StakeWise highlights the possibility of reclaiming some assets after such breaches, Weex reported. However, the DAO’s achievement does not allay wider fears about DeFi’s susceptibility to invariant manipulation, where attackers exploit pricing formulas to empty liquidity pools, DLNews observed.
This event highlights a persistent issue in crypto security: even with increased spending on audits and bug bounty programs, advanced exploits continue to target complex code. By November 2025, losses from crypto-related breaches had already surpassed $2.2 billion for the year, according to DLNews. Experts emphasize that comprehensive security approaches, including proactive monitoring and community-led response systems, may be essential to counteract emerging risks.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin Updates: Bitcoin Faces Q4 Decline While Specialized Projects Show Strength—Is This the Dawn of a New Crypto Age?
- Bitcoin fell nearly 15% in October 2025 amid U.S.-China trade tensions and Fed policy shifts, dropping below $108,000 after a brief $126,000 peak. - Institutional trading and ETF activity now dominate Bitcoin's price movements, amplifying its sensitivity to macroeconomic trends compared to past retail-driven cycles. - Niche projects like Pi Network showed resilience through community-driven growth, expanding users in Q4 despite token prices remaining below $0.30. - Market complexity grows as Bitcoin's de
Bitcoin Updates: Bitcoin at a Crossroads—Corporate Adoption Meets Regulatory and Technical Challenges
- Bitcoin faces conflicting signals as corporate adoption accelerates, with Prenetics and Strategy Inc. expanding holdings to $41M and $70.9B respectively. - Technical risks like "death cross" patterns and regulatory uncertainty persist, despite bullish corporate strategies and institutional Bitcoin-backed credit innovations. - Institutional caution grows as Hargreaves Lansdown restricts crypto exposure until 2026, while Japan and Luxembourg integrate Bitcoin into energy/sovereign portfolios. - Market vola
Blockchain Bridges: Linking Blockchains—But How Secure Are They?
- Blockchain bridges enable cross-chain asset transfers, critical for Komodo's interoperability and DeFi ecosystems. - Security risks persist: Balancer's $117M 2025 exploit exposed smart contract vulnerabilities in DeFi protocols. - Komodo prioritizes security through Bitcoin-based consensus and modular design to reduce centralized bridge reliance. - Users must verify transfers, monitor fees, and avoid unverified protocols during active exploits to mitigate risks.
Solana News Today: Solana Whale Faces $22M Setback After Unbroken Winning Run, Highlighting Dangers of Leverage
- A Solana whale's $22.7M loss reverses 14 consecutive profitable trades, triggering market jitters. - Institutional players like SOL Strategies expand validator networks, boosting Solana's APY to 6.68%. - Leverage risks highlighted as whale liquidates $258M in BTC/ETH/SOL, signaling broader market uncertainty. - Regulatory pressures and Fed policy shifts exacerbate volatility, testing Solana's institutional resilience.
Trending news
MoreCrypto prices
More
