Balancer regains domain control after DNS attack, weighs registrar switch

Decentralized finance liquidity protocol Balancer said Wednesday it has regained control over its domain after a DNS attack on Tuesday left its user interface compromised. 

Balancer, in a statement on social media, said its “domain is now secure and back under the control of the Balancer DAO.”

The attack prompted the Balancer team to issue a public notice advising users not to interact with the platform’s user interface while they continued to investigate the incident. 

Balancer attributed the attack to social engineering tactics executed on EuroDNS, a domain registrar for the .fi top-level domain (TLD). Balancer is exploring the deprecation of the .fi TLD in favor of a more secure domain registrar, and is recommending others follow suit.

The “.fi” TLD is the country code specifically designated for Finland. Like other country-code TLDs such as “.uk” for the United Kingdom or “.au” for Australia, “.fi” is primarily intended for entities located within or associated with the designated country.

Blockworks has reached out to learn more, but has yet to receive a response.

Crypto analyst ZachXBT on Tuesday disclosed that stolen funds from the platform were being routed to a specific Ethereum address. The theft reportedly totaled approximately $238,000. 

The attack also triggered fluctuations in the value of Balancer’s native token (BAL), sending the token down by 3.2% from a daily high of $3.44 to $3.27 on Tuesday. The asset has since fallen a further 1.2% to $3.23 on the day.

Balancer’s security incident is the latest in a series of setbacks for the protocol. The platform faced a similar exploit targeting its liquidity pools last month. 

Constructed on the Ethereum blockchain network, Balancer serves dual roles as an automated market maker and a liquidity facilitator. This enables users to conduct token trades directly through its liquidity pools, eliminating the necessity for a conventional order book.

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