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Slow Fog: Balancer attackers can exploit calculation errors in the transaction pool scaling factor to profit from low liquidity exchanges.

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[Slow Fog: Balancer attackers exploit calculation errors in the transaction pool scaling factor to profit from low liquidity exchanges] Slow Fog Yuxian released an analysis report on the over $100 million hack of Balancer, pointing out that the fundamental reason lies in the Composable Stable Pool implementation of Balancer v2 (based on Curve StableSwap's Stable Math), where there is a precision loss issue in integer fixed-point operations for the scaling factor (scalingFactors), resulting in a small but compound interest accumulating price difference/error during token exchanges. Attackers exploit low liquidity small exchanges to magnify this error for significant cumulative profits.

BAL-1%
CRV-4.17%
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