We are also grateful to @NolanV for his post and incident report.
The affected EURe/sDAI pool was created to support Gnosis Pay and Monerium on Gnosis Chain, through a partnership between kpk, Gnosis and Balancer. The technical, operational, and financial contributions to this effort have been shared among the three of us to varying degrees over time since the initial deployment.
Due to the coordination across different teams with varying expertise, the process of evaluating this situation has been challenging. However, we recognise our response should have been faster, and apologise for the delay.
We confirm that we became aware of the situation in February 2025, and that we followed up with a resolution which was proposed for onchain execution by Balancer DAO in March and executed in April, effectively resolving the issue. As stated by @nesk, the measures taken to rectify the misconfigured parameters were sufficient, and there was no impact on users’ funds once those were enacted.
Since that time, and together with Balancer’s data analytics team, we have been performing an extensive evaluation of the underlying data. We provide a full summary of the findings in our proposal referenced below.
In short, we find that – absent the misconfiguration – liquidity providers in the pool would have received in aggregate up to 330,000 USD more from their positions. We agree with nesk that a reimbursement is appropriate here (including a bounty for NolanV).
Based on the above, we have prepared and will now submit a draft GIP-127, proposing a reimbursement for liquidity providers for their lost opportunity, as well as a bounty for NolanV.
We are keen to hear and address any further questions that the community may have on this situation. This reply is given on behalf of kpk only. We are, however, in discussion with Balancer and Gnosis on this topic, and may need to defer to one another to provide full and proper answers to specific questions.