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[SlowMist Analysis Indicates Balancer V2 Vulnerability Stems from Precision Loss Issue] The SlowMist security team released a report stating that the major vulnerability in Balancer V2 resulted in approximately $120 million in losses, affecting multiple blockchain projects and forked versions. SlowMist pointed out that the root cause of the vulnerability lies in precision loss issues in the integer fixed-point arithmetic of composable stable pools, leading to cumulative price errors during token swaps. Attackers exploited these errors by amplifying deviations through small swaps under low liquidity conditions. SlowMist recommends that project teams and auditors strengthen testing for extreme scenarios and boundary conditions, with particular attention to precise handling strategies under low liquidity conditions.

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