Notional will shut down the V3 protocol to address the bad debt risk caused by the Balancer attack

Due to the Balancer vulnerability, Notional confirms that its V3 protocol has incurred approximately 721.6 ETH in bad debt across the Ethereum mainnet and Arbitrum (641.4 ETH on the mainnet, 80.2 ETH on Arbitrum). Affected Balancer/Aura leveraged vault users will face a 100% loss; the account values of ETH lenders and liquidity providers on both the mainnet and Arbitrum will see significant reductions, including some users who borrowed against ETH collateral, while other accounts remain unaffected.

Notional states that due to the large scale of bad debt, the V3 protocol will gradually shut down on the Ethereum mainnet and Arbitrum, with a detailed asset withdrawal plan to be announced later. For cross-asset lending users, the platform will automatically migrate positions to Aave to prevent liquidation risks during the shutdown process. The official statement indicates that the team will release a detailed report as soon as possible, outlining the reduction ratios for ETH lenders and liquidity providers, remediation plans, and calculation methods, and emphasizes that they are making every effort to recover assets and minimize user losses.