Balancer Labs to Disband as DAO Takes Over After Hack and TVL Collapse

Balancer is a DeFi protocol built around automated market making and liquidity pools, with development previously handled by Balancer Labs. The protocol was hacked in November 2025, suffering losses of about $110 million to $128 million and compounding its financial strain. Total value locked, or TVL, fell by more than 95% from its peak, while the founder came to view the corporate structure as an operational liability.

Balancer Labs announced in March 2026, about four months after the hack, that it would cease operations. The protocol had about $158 million in TVL at the time. Governance and maintenance will be transferred to the Balancer Foundation and DAO, while BAL token emissions will stop and spending will be reduced under a leaner, community-led operating model. The Balancer protocol itself will not shut down.