The root cause of the Balancer hack: the scaling factor calculation error in the implementation of Balancer v2's Composable Stable Pool can be amplified for profit through low Liquidity exchanges.

[Slow Fog Yuxian: The fundamental reason for the Balancer hack is that in the implementation of Balancer v2's Composable Stable Pool, the scaling factor calculation error can be magnified for profit through low liquidity exchanges] Slow Fog Yuxian released an analysis report on the Balancer hack of over 100 million USD, indicating that the root cause lies in the implementation of Balancer v2's Composable Stable Pool (based on Curve StableSwap's Stable Math), where there is a precision loss issue in the integer fixed-point operation of scaling factor (scalingFactors), leading to a small but compound interest-accumulating price difference/error in token exchanges. The attacker exploited low liquidity small exchanges to amplify this error for significant cumulative profit.