On November 28, news broke that after the Balancer v2 treasury was attacked due to a major vulnerability, resulting in a loss of over $110 million in funds, Balancer DAO has begun discussing a plan to allocate approximately $8 million of recovered assets to affected LPs. The proposed plan includes providing structured rewards to white hat hackers and compensating users based on snapshot data of user pool assets at the time of the exploit, in accordance with the Safe Harbor Protocol. This protocol stipulates a bounty cap of $1 million per incident, and white hat hackers must complete full KYC and sanctions screening. Several anonymous rescuers on Arbitrum have waived their bounty claims. The recovered tokens cover networks such as Ethereum, Polygon, Base, and Arbitrum, and liquidity providers will be compensated based on the initially provided tokens, proportionate to the pool. A claims mechanism is currently being developed, and if the proposal passes, users will need to accept the updated terms of use. Additionally, $19.7 million of osETH and osGNO was recovered by StakeWise and will be handled separately; $4.1 million recovered in collaboration with Certora does not meet the bounty conditions due to a previous agreement. This exploit was caused by a defect in smart contracts and marks Balancer's third major security incident, leading to a Total Value Locked of (TVL) falling from approximately $775 million to $258 million, with the value of BAL tokens also losing about 30%.